Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 6 Problem 7-12 (Algo) 10 points Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenarios: Scenario 1 2 Probability 0.5 0.5 Market Return 8 % 20 Aggressive Stock 3.6% 26 Defensive Stock 5.4% 12 Required: a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Answer is complete and correct. 1.87 Beta A Beta D 0.55 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 6 10 points b. What is the expected rate of return on each stock? (Round your answers to 2 decimal places.) Answer is complete and correct. 14.80% Rate of return on A Rate of return on D 8.70 % c. If the T-bill rate is 7%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round 10 points c. If the T-bill rate is 7%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is not complete. Alpha A Alpha D % (2.15) %