Suppose you observe the following situation: State of Economy Boom Normal Bust Probability of State 19 74 .07 Return if State Occurs Stock A -.07 Stock B -.05 15 20 49 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., 32.16.) Expected retum Stock A Stock B b. Assuming the capital asset pricing model holds and Stock A's beta is greater than Stock B's beta by .18, 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., 32.16.) Market risk premium