Problem $13-26$ Systematic versus Unsystematic Risk $($LO$3)$

Consider the following information about Stocks I and II:

$\backslash$table$[[,$Rate of Return If State,,$],[$Occurs$,,,],[$State of Economy,$\backslash$table$[[$Prility$],[$of State of$]],,],[$Recession$,$Economy,Stock I,Stock II$],[$Normal$,0\mathrm{.}15,0\mathrm{.}02,-0\mathrm{.}25],[$Irrational exuberance,$0\mathrm{.}70,0\mathrm{.}21,0\mathrm{.}09]]$

The market risk premium is $7\%,$ and the risk$-$free rate is $4\%.($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

The standard deviation on Stock I$\text{'}$s return is $\%,$ and the Stock I beta is $-$ The standard deviation on Stock II's return is $\%,$ and the Stock II beta is $-$ Therefore, based on the stock's systematic risk$/$ beta, Stock is "riskier".