$/$Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns:

Market Return

Risky Stock

Safe Stock

$59\%25$

$2\%38$

$6\%12$

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 $25\%?$ I the T$-$bill rate is $6\%$ and the market return is equally likely to be $5\%$ or $25\%,$ draw the C$.$ SML for this economy. d$.$ Plot the two securities on the SML graph. What are the alphas of each? e$.$ What hurdle rate should be used by the management of the aggressive firm for a project with the risk characteristics of the defensive firm's stock?