apter 11 Assignment Seved 11 Problem 11-30 Systematic versus Unsystematic Risk [LO 3] ts Book Consider the following information on Stocks I and II: Rate of Return if State Probability of Occurs State of State of Economy Economy Stock ! Stock II Recession 21 2015 - 31 Normal .56 .325 .23 Irrational .23 .185 41 exuberance Print erences The market risk premium is 11.1 percent, and the risk-free rate is 4.1 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.) 14