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Consider the following information on Stocks I and II: The market risk premium is 1 1 . 6 percent, and the risk - free rate
Consider the following information on Stocks I and II:
The market risk premium is percent, and the riskfree rate is percent.
a 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 decimal
places, eg
b 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 decimal
places, eg
c Which stock has the most systematic risk?
d Which one has the most unsystematic risk?
e Which stock is "riskier"?
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