please do not use excel

1. 14 Points] Consider the following information on Stocks A and B:

State of Economy	Probability of	Rate of Return if State Occurs
	State of Economy	Stock A	Stock B
Recession	0.30	2%	-5%
Boom	0.70	15%	12%

The market expected return is 11%, and the risk-free rate is 4%.

1. Which stock has more systematic risk? Use the calculation to support your answer.
2. Which stock has more total risk? Use the calculation to support your answer.