Problem 13-26 Systematic versus Unsystematic Risk [LO3] Consider the following information about Stocks I and I Rate of Return If State Occurs State of Probability of State of Stock II Economy Stock I Economy 28 Recession 05 -20 Normal 53 17 07 Irrational 19 06 40 exuberance The market risk premium is 8 percent, and the risk-free rate is 2 percent. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16. Enter your return answers as a percent.) percent, and the Stock I beta is The standard deviation on Stock l's return is 1.19 The standard deviation on Stock Il's return is percent, and the Stock II Therefore, based on the stock's systematic risk/beta, Stock is "riskier" beta is