the market risk premium is 7.5% and the risk free rate is 3.85%. Determine the expected return and standard deviation for each stock. which stock has the most systematic risk? which stock is riskier overall?

3. Consider the following information on pharmaceutical companies, Pfizer Inc. PFE, Johnson & Johnson JNJ and Merck MRK State of Economy Recession Normal Boom Probability of State of Economy 10.0% 25.0% 65.0% Rate of Return if State Occurs PFE JNJ MRK 2.25% -6.75% 4.85% 22.15% 12.25% 27.22% 41.35% 18.60% 36.40%