2. Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive Stock 5% 2% 3.5% 20% 32% 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%? (c) If the T-bill rate is 8% and the market return is equally likely to be 5% or 20%, draw the SML for this economy. (d) Plot the two securities on the SML graph. What are the alphas of each