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PLEASE ANSWER IT ASAP Question 4. Consider the following information about Stocks X and Y: State of Economy Probability of State Stock X Returns Recession

PLEASE ANSWER IT ASAP image text in transcribed
Question 4. Consider the following information about Stocks X and Y: State of Economy Probability of State Stock X Returns Recession 0.15 0.11 Steady 0.55 0.18 Boom 0.30 0.08 Stock Y Returns -0.25 0.11 0.31 The market risk premium is 7.5 percent, and the risk-free rate is 4 percent. Which stock has the most systematic risk? Which one has the most unsystematic risk? Which stock is "riskier"? Explain. (4 Marks)

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