2. Expected return on two stocks for two particular market returns: Market Return Aggressive Stock Defensive Stock 4% -5% 6% 20% 30% 10% 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 40% likely to be 4% and 60% likely to be 20%? c. If the T-bill rate is 5% and the market return is 40% likely to be 4% and 60% likely to be 20%, draw the SML for this economy. d. Between aggressive and defensive stocks, which one is undervalued, which is overvalued, and why