Suppose you observe the following situation:

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$.,$

$32\mathrm{.}16.)$

b$.$ Assuming the capital asset pricing model holds and Stock A$\text{'}$s beta is greater than

Stock B$\text{'}$s beta by $.30,$ 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$.,32\mathrm{.}16.)$