Consider the following information on Stocks I and II: State of Probability of Rate of Return if State Occurs Economy State of Economy Stock I Stock II Recession .26 .025 .21 Normal .61 .325 .13 Irrational exuberance .13 .185 .41 The market risk premium is 11.1 percent, and the risk-free rate is 4.1 percent.

Calculate the beta and standard deviation of Stock I and 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.)

Stock I's

Beta =

Standard deviation % =

Stock II's

Beta =

Standard deviation %=