Consider the following information on Stocks I and II:

State of Economy Probability of State of Economy Rate of Return if State Occurs

Stock I Stock II

Recession $0\mathrm{.}300\mathrm{.}050\mathrm{.}18$

Normal $0\mathrm{.}400\mathrm{.}190\mathrm{.}14$

Irrational exuberance $0\mathrm{.}300\mathrm{.}130\mathrm{.}29$

The market risk premium is $8$ percent and the risk$-$free rate is $5$ percent.

a$-1.$ What is the beta of each stock?

Note: not round intermediate calculations. Round your answers to $2$ decimal places.

a$-2.$ Which stock has the most systematic risk?

multiple choice $1$

Stock I

Stock II

b$-1.$ What is the standard deviation of each stock?

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to $2$ decimal places.

b$-2.$ Which one has the most unsystematic risk?

multiple choice $2$

Stock I

Stock II

c$.$ Which stock is $$riskier$?$

multiple choice $3$

Stock I

Stock II