State of Economy .25 Stock II -20 State of Economy Recession Normal Irrational exuberance .60 Stock .020 320 .180 12 .40 The market risk premium is 11 percent, and the risk-free rate is 4 percent. a. Calculate the beta and standard deviation of Stock I. (Do not round intermediate calculations. Enter the standard deviation as a percent and round both answers to 2 decimal places, e.g., 32.16.) b. Calculate the beta and standard deviation of Stock II. (Do not round intermediate calculations. Enter the standard deviation as a percent and round both answers to 2 decimal places, e.g., 32.16.) c. Which stock has the most systematic risk? d. Which one has the most unsystematic risk? e. Which stock is "riskier"? a. Beta Standard deviation Beta Standard deviation Most systematic risk d. Most unsystematic risk e. "Riskier" stock