D Question 6 15 pts Consider the following information about Stock I and II. The market risk premium is 10 percent and the risk-free rate is 3 percent Rate of Return Probability Stock 1 Stock II 0.30 State of Economy Recession Normal Irrational exuberance 0.04 -0.15 0.15 0.06 0.60 0.10 0.05 0.35 1) Which stock is riskier if it is to be held as part of a well-diversified portfolio? 2) If you invest 65% of your wealth in Stock I and the remaining in Stock II, what is the systematic risk of your portfolio? Upload Choose a File