Following is the rate-of-return component information for First Venture investors:

Rate                                                                    Return

Component                                                  Component

Liquidity Premium ………………………....               5%

Risk-free Rate ……………………………..                6

Advisory Premium ………………….....…..                9

Market Risk Premium …………....……....            11.5

Hubris Projection Premium …..........…...                40

A. Calculate the expected rate of return before considering premiums for illiquidity, advisory activities, and hubris projections.
B. Estimate the hubris projections premium for this First Venture investment.