Suppose you observe the following situation:

a$.$ Calculate the expected return on each stock. $($Do not round intermediate calculations. Round the final answers to $2$ decimal

places.$)$

b$.$ Assuming the capital asset pricing model holds and Stock A$\text{'}$s beta is greater than Stock B$\text{'}$s beta by $0\mathrm{.}30,$ what is the expected

market risk premium? $($Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Expected market risk premium