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Consider the following information about Stocks I and II: ...

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Finance

Consider the following information about Stocks I and II:

Rate of Return If State Occurs
State of Probability of
Economy State of Economy Stock I Stock II
Recession .25 .05 -.36
Normal .45 .20 .08
Irrational exuberance .30 .11 .46

The market risk premium is 8 percent, and the risk-free rate is 4 percent. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16. Enter your return answers as a percent. )

The standard deviation on Stock I's return is ________ percent, and the Stock I beta is _________ . The standard deviation on Stock II's return is ________ percent, and the Stock II beta is _________ . Therefore, based on the stock's systematic risk/beta, Stock (l/ll) is "riskier".

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