Systematic versus Unsystematic Risk $$ LO$3]$ Consider the following information about Stocks I and II:

$\backslash$table$[[$State of$,$Probabllity of$,$Rate of Return If State Occurs,$],[$Economy$,$State of Economy,Stock I,Stock II$],[$Recession$,\mathrm{.}15,\mathrm{.}05,-\mathrm{.}21],[$Normal$,\mathrm{.}70,\mathrm{.}18,\mathrm{.}10],[$Irrational exuberance,$\mathrm{.}15,\mathrm{.}07,\mathrm{.}39]]$