Question 32 (3 marks) Consider the following information about Stocks A and B. The market risk premium is 7%, and the risk-free rate is 3% State of economy Recession Normal rational exuberance Rate of Return if State Occurs Probability of state of economy 0.15 0.70 0.15 What are the approximate expected rates of returns for Stocks A and B a 0.097 and 0.093 b:0.210 and 0.090 c0.159 and 0.092 d. 0,060 and 0.160 Oa Ob. Oc. Od Stock A Stock B 0.02 -0.25 0.21 0.09 0.06 0.44