Consider the following information on Stocks I and II: Probability of State of Economy .20 .55 State of Economy Recession Normal Irrational exuberance Rate of Return if State Occurs Stock 1 Stock 11 .02 .32 .12 .40 -.20 .25 .18 The market risk premium is 7 percent, and the risk-free rate is 4 percent. Requirement 1: (a) Calculate the beta and standard deviation of Stock I. (Do not round intermediate calculations. Enter the standard deviation as a percentage. Round your answers to 2 decimal places (e.g., 32.16).) Requirement 1: (a) Calculate the beta and standard deviation of Stock I. (Do not round intermediate calculations. Enter the standard deviation as a percentage. Round your answers to 2 decimal places (e.g., 32.16).) Stock 1 Beta Standard deviation % (b) Calculate the beta and standard deviation of Stock II. (Do not round intermediate calculations. Enter the standard deviation as a percentage. Round your answers to 2 decimal places (e.g., 32.16).) Stock II Beta Standard deviation %