Problem $13-26$ Systematic versus Unsystematic Risk $[$LO$3]$

Consider the following information about Stocks I and II:

$\backslash$table$[[$State of Economy,$\backslash$table$[[$Probability of State of$],[$Economy$]],\backslash$table$[[$Rate of Return if State$],[$Occurs$]]],[$Stock I,Stock II$],[$Recession$,\mathrm{.}25,\mathrm{.}02,-\mathrm{.}33],[\backslash$table$[[$Normal$],[$lrrational$]],\mathrm{.}45,30,\mathrm{.}13],[$Irrational exuberance,$\mathrm{.}30,\mathrm{.}08,53]]$

The market risk premium is $8$ percent, and the risk$-$free rate is $5$ percent. $($Do not round intermediate calculations. Enter your standard deviation answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ Round your beta answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$The standard deviation on Stock I$\text{'}$s return is$,,],[$deviation on Stock Il's return is$,$percent, and the Stock II beta is$,$percent, and the Stock I beta is$],[$stock$\text{'}$s systematic risk$/$beta$,$ Stock,is "riskier".,Therefore, based on the$]]$