Consider the following information on Stocks I and II: State of Economy Probability of State of...

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Consider the following information on Stocks I and II: State ofEconomy Probability of State of Economy Rate of Return if StateOccurs Stock I Stock II Recession .24 .030 ?.34 Normal .59 .340 .26Irrational exuberance .17 .200 .44 The market risk premium is 11.4percent, and the risk-free rate is 4.4 percent. Requirement 1: (a)Calculate the beta and standard deviation of Stock I. (Do not roundintermediate calculations. Enter the standard deviation as apercentage. Round your answers to 2 decimal places (e.g., 32.16).)Stock I Beta Standard deviation % (b) Calculate the beta andstandard deviation of Stock II. (Do not round intermediatecalculations. Enter the standard deviation as a percentage. Roundyour answers to 2 decimal places (e.g., 32.16).) Stock II BetaStandard deviation % Requirement 2: (a) Which stock has the mostsystematic risk? (b) Which one has the most unsystematic risk? (c)Which stock is “riskier”?

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Consider the following information on Stocks I and II: State ofEconomy Probability of State of Economy Rate of Return if StateOccurs Stock I Stock II Recession .24 .030 ?.34 Normal .59 .340 .26Irrational exuberance .17 .200 .44 The market risk premium is 11.4percent, and the risk-free rate is 4.4 percent. Requirement 1: (a)Calculate the beta and standard deviation of Stock I. (Do not roundintermediate calculations. Enter the standard deviation as apercentage. Round your answers to 2 decimal places (e.g., 32.16).)Stock I Beta Standard deviation % (b) Calculate the beta andstandard deviation of Stock II. (Do not round intermediatecalculations. Enter the standard deviation as a percentage. Roundyour answers to 2 decimal places (e.g., 32.16).) Stock II BetaStandard deviation % Requirement 2: (a) Which stock has the mostsystematic risk? (b) Which one has the most unsystematic risk? (c)Which stock is “riskier”?