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Suppose you observe the following situation: a. Calculate the expected return on each stock. Note: Do not round intermediate calculations and enter your answers as

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Suppose you observe the following situation: a. Calculate the expected return on each stock. Note: 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? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16

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