Problem 13-26 Systematic versus Unsystematic Risk (LO3) Consider the following information about Stocks I and I Rate of Return If State Occurs --23:22 ped Probability of State of Economy 25 .55 Stock State of Economy Recession Normal Irrational exuberance Stock OS 20 -28 15 20 Sok .14 48 ences The market risk premium is 8 percent, and the risk-free rate is 5 percent. (Do not round intermediate calculations. Round your answers to 2 decimal places. e.9. 32.16. Enter your return answers as a percent. ) The standard deviation on Stock I's return is percent, and the Stock I beta is The standard deviation on Stock Il's return is percent and the Stock Il beta is Therefore, based on the stock's systematic risk/beta, Stock Click to select is "riskler