Question: 14. Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: (10%) Market Return Defensive Stock
14. Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: (10%) Market Return Defensive Stock Aggressive Stock 2% 32 5% 3.5% 20 14 a. What are the betas of the two stocks? b. What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%
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