Stock Y has a beta of 150 and an expected return of 16.4 percent Stock Z has a beta of 95 and an expected return of 12.6 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate % Suppose you observe the following situation: Return of State Occurs State of Probability Economy of State Stock A Stock B Boom 15 -05 -08 Normal 70 16 17 Bust 15 48 29 35 a. Calculate the expected return on each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) b. Assuming the capital asset pricing model holds and Stock A's beta is greater than Stock B's beta by 35, what is the expected market risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A Stock B 15.10% 13,40 % 04 h Market risk comum