Problem $7\mathrm{.}4($b$)$

Suppose there are two independent economic factors, $M_1$ and $M_2.$ The risk$-$free rate is $5\%,$ and all stocks have independent firm$-$specific components with a standard deviation of

$48\%.$ Portfolios A and $B$ are both well diversified.

What is the risk premium of the $M_2$ factor?$($Do not round intermediate calculations. Enter your answer in percentage points. Round your answers to $2$ decimal places.$)$