Suppose you observe the following situation: State of Economy Bust Normal Boom Probability of State 0.15 0.70 0.15 Return if State Occurs Stock A Stock B -0.06 -0.06 0.15 0.16 0.48 0.29 Calculate the expected return on Stock A and Stock B (%) Assuming the capital asset pricing model holds and stock As beta is greater than stock Bos beta by .25, what is the expected market risk premium? (%) 3 5.1. 09. GAMBAR LOKASI PELAN & SKALA BILIK MOB-TINGKAT 1- TENGAH