Based on the CAPM, the required rate of return on a stock is 12%, the stock is 20 percent more risky than a well-diversified market por olio. Risk free interest rate is 4% and expected return on the market is 10%. What is the market's risk premium? What is the stock's risk premium - in that order? 1. 5%, 6% 2.6%, 6% 3.6%, 5% 4. none