Suppose you have estimated the following returns for stocks of Bank of America and Citigroup in three possible states of the economy. State of Economy Boom Normal Recession What are the expected returns? Bank Of America Stock Citigroup Stock Probability of State of Economy Bank Of America Stock Citigroup Stock 30% 60% Expected Return Expected Return if State Occurs Bank of America Citigroup 12% 7% 5% If the risk-free rate is 4.15%, what is the risk premium for each stock? Risk-Premium 17% 5% -2%