Consider the following information on Stocks I and II:
Rate of Return if State Occurs State of Economy / Probability of State of Economy / Stock I / Stock II
Recession 0.11 0.05 -0.25
Normal 0.18 0.19 0.45
Irrational Exuberance .71 .25 .27
The market risk premium is 14 percent, and the risk-free rate is 8.4 percent.
For standard deviations: (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))
For betas: (Round your answers to 2 decimal places. (e.g., 32.16))
The standard deviation on Stock I's expected return Is ? percent and the Stock I beta is ?. The standard deviation on Stock II's expected return is percent, and the Stock II beta is ?