12 Problem 11-29 SML [LO 4] Suppose you observe the following situation 66 points Return if State Occurs State of Economy Boom Normal Bust Probability of State 16 71 .13 eBook Stock A -06 17 45 Stock B -05 .16 .30 Print o References a. Calculate the expected return on each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Assuming the capital asset pricing model holds and Stock A's beta is greater than Stock B's beta by 30, what is the expected market risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a Stock A Stock B b. Market risk premium % % % Mc Graw Hill