Let the risk-free rate be 4%. Consider a financial market M. Suppose the economy has two scenarios: boom or bust. The retum in each scenario for the market portfolio Mand a stock A that is traded in M are given in the following table: Rates of return and states Scenario Market Portfolio M Stock A Boom -8% -10% Bust 32% 38% If each scenario is equally likely, answer the following questions: (1) List, in general from what you have learned in this course, ways to compute the expected rate of return on a stock. (Hint: No need for computations or elaborations here). (2) From your answer in part (1), find the expected rate of return on stock A in two different ways. A- II! III U d- X X ali 10