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	.20	.045	.25
Normal	.65	.345	.17
Irrational exuberance	.15	.205	.45

The market risk premium is 11.5 percent, and the risk-free rate is 4.5 percent.

Calculate the beta and standard deviation of Stock I.

Note: Do not round intermediate calculations. Enter the standard deviation as a percent and round both answers to 2 decimal places, e.g., 32.16.

Calculate the beta and standard deviation of Stock II.

Note: Do not round intermediate calculations. Enter the standard deviation as a percent and round both answers to 2 decimal places, e.g., 32.16.

Which stock has the most systematic risk?

Which one has the most unsystematic risk?

Which stock is riskier?