Suppose you observe the following situation: Rate of Return If

State Occurs State of Probability of Economy State Stock A Stock B

Bust $\mathrm{.}20\mathrm{.}08\mathrm{.}06$ Normal $\mathrm{.}60\mathrm{.}13\mathrm{.}13$ Boom $\mathrm{.}20\mathrm{.}48\mathrm{.}28$ a$.$ Calculate

the expected return on each stock. $($Do not round intermediate

calculations. Enter your answers as a percent rounded to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.)$ Expected return Stock A $\%$ Stock B $\%$ b$.$

Assuming the capital asset pricing model holds and Stock A$\text{'}$s beta

is greater than Stock B$\text{'}$s beta by $\mathrm{.}55,$ what is the expected market

risk premium? $($Do not round intermediate calculations. Enter your

answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Expected market risk premium $\%$