Question: Please show work that is not on excel please. Thank you. Consider the following information 30. Systematic versus Unsystematic Risk. on Stocks I and II:

Please show work that is not on excel please. Thank you.

Consider the following information 30. Systematic versus Unsystematic Risk. on Stocks I and II: Probability of State of Economy State of Rate of Return If State Occurs Economy Stock I Stock ll Recession 25 -.20 .02 Normal .12 60 .32 Irrational exuberance .40 .15 .18 00B 0 The market risk premium is 7 percent, and the risk-free rate is 4 percent. Which stock has the most systematic risk? Which one has the most unsystematic risk? Which stock is "riskier"? Explain

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