Problem 13-26 Systematic versus Unsystematic Risk [LO3] Consider the following information about Stocks I and Il Rate of Return If State Occurs Probability of State of Economy State of Economy Recession Normal Irrational exuberance Stock I 10 17 Stock II 30 40 30 -.25 12 45 The market risk premium is 8 percent, and the risk-free rate is 3 percent. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16. Enter your return answers as a percent.) The standard deviation on Stock I's return is The standard deviation on Stock II's return is percent, and the Stock I beta is percent, and the Stock Il beta is Therefore, based on the stock's systematic risk/beta, Stock (Click to select) is "riskier