Problem $13-26$ Systematic versus Unsystematic Risk $[$LO$3]$

Consider the following Information about Stocks I and II:

$\backslash$table$[[,$Probahlity of$,$Rate of$,\backslash$table$[[$in if State$],[$irs$]]],[$State of Economy,Economy,Stock I,Stock II$],[$Recession$,\mathrm{.}20,\mathrm{.}04,],[\backslash$table$[[$Normal$],[$Irrational$]],60,26,15],[$Irrational exuberance,$20,10,\mathrm{.}55]]$

The market risk premium is $5$ percent, and the risk$-$free rate is $4$ percent. $($Do not round Intermedlate calculations. Enter your standard devlation answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ Round your beta answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$The standard deviation on Stock I$\text{'}$s return is$,$percent, and the Stock I beta is$,,],[$deviation on Stock Il's return is$,$percent, and the Stock II beta is$,,],[$stock$\text{'}$s systematic risk$/$beta$,$ Stock,,is "riskier".,Therefore, based on the$]]$