Rate of Return If State Occurs State of Stock 11 Stock I Probability of State of Economy 20 .60 .09 18 Economy Recession Normal Irrational exuberance -26 .13 46 12 20 The market risk premium is 5 percent, and the risk-free rate is 4 percent. (Do not round intermediate calculations. Enter your standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16. Round your beta answers to 2 decimal places, e.g., 32.16.) The standard Therefore, based on the percent, and the Stock I beta is percent, and the Stock Il beta is is "riskier" The standard deviation on Stock I's return is deviation on Stock Il's return is stock's systematic risk/beta, Stock