22. In one year the economy could be in one of three possible states: bust, normal, or boom with corresponding probabilities of 0.25, 0.5 and 0.25. The returns on a common stock A and the market portfolio M conditional on the state of the economy are presented in the table below. Assuming CAPM holds in the economy, calculate the market risk premium over the period. (15 marks) Probability Stock A Market Portfolio Bust 0.25 -5% 3% Normal 0.50 10% 8% Boom 0.25 25% 13%