Question: 38 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

 38 Consider the following table, which gives a security analyst's expected

38 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% 6% 25 12 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 25%? c. If the T-bill rate is 6% and the market return is equally likely to be 5% or 25%, draw the SML for this economy. d. Plot the two securities on the SML graph. What are the alnhac ntah

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