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View previous attempt 15 Consider the following information about Stocks I and II: Rate of Return If State Occurs State of Economy Recession Normal Irrational

View previous attempt 15 Consider the following information about Stocks I and II: Rate of Return If State Occurs State of Economy Recession Normal Irrational exuberance Probability of State of Economy .15 .70 Stock I .03 .20 Stock 11 -.23 .09 .15 .08 .43 The market risk premium is 7 percent, and the risk-free rate is 3.5 percent. (Round your answers to 2 decimal places, e.g., 32.16.) The standard The standard deviation on Stock I's return is deviation on Stock Il's return is stock's systematic risk/beta, Stock 6.78 percent, and the Stock I beta is 18.08 percent, and the Stock Il beta is is riskier. Therefore, based on the

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