Q7. Assume you are a U.S. investor who is considering investments in the German (stock A) and Italian (stock B) markets. The world market risk premium is 5 percent. The currency risk premium on the Italian lira is 1.57 percent, and the currency risk premium on the euro is 1.45 percent. The interest rate on one-year risk-free bonds is 4.25 percent in the United States. In addition you are provided with the following information. Please calculate the expected return of the two stock. Stock A B B 1 1.4 Ye 1 -1.2 YIT -0.25 0.8