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	.21	.040	.36
Normal	.61	.350	.28
Irrational exuberance	.18	.210	.46

The market risk premium is 11.6 percent, and the risk-free rate is 4.6 percent.
a.	Calculate the beta and standard deviation of Stock I. (Do not round intermediate calculations. Enter the standard deviation as a percent and round both answers to 2 decimal places, e.g., 32.16.)
b.	Calculate the beta and standard deviation of Stock II. (Do not round intermediate calculations. Enter the standard deviation as a percent and round both answers to 2 decimal places, e.g., 32.16.)
c.	Which stock has the most systematic risk?
d.	Which one has the most unsystematic risk?
e.	Which stock is riskier?

a.	Beta		_____
	Standard deviation		____%
b.	Beta		_____
	Standard deviation		_____%
c.	Most systematic risk		_____
d.	Most unsystematic risk		_____
e.	"Riskier" stock_______