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Please show work that is not on excel please. Thank you. 30. Systematic versus Unsystematic Risk. Consider the following information on Stocks I and II:

Please show work that is not on excel please. Thank you. image text in transcribed

30. Systematic versus Unsystematic Risk. Consider the following information on Stocks I and II: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock Stock II .25 .02 -.20 Recession Normal Irrational exuberance .60 .32 1.18 . 15 The market risk premium is 7 percent, and the risk-free rate is 4 perc Which stock has the most systematic risk? Which one has the most unsystematic risk? Which stock is riskier? Explain

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