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UCCUS State of Economy Recession Normal Irrational exuberance State of Economy .22 .62 Stock .045 .355 Stock II -.37 29 .16 .215 47 The market
UCCUS State of Economy Recession Normal Irrational exuberance State of Economy .22 .62 Stock .045 .355 Stock II -.37 29 .16 .215 47 The market risk premium is 11.7 percent, and the risk-free rate is 4.7 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 % b. Beta % Standard deviation c. Most systematic risk d. Most unsystematic risk e. "Riskier" stock
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