Consider the following table, which gives a security analyst's expected return on two stocks in two...

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Consider the following table, which gives a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the market: Market Return 5% 26 Aggressive Stock -3% 38 Defensive Stock 5% 9 a. What are the betas of the two stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Aggressive stock Defensive stock Beta (9.00) 0.00 b. What is the expected rate of return on each stock if the two scenarios for the market return are equally likely to be 5% or 26%? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Aggressive stock Defensive stock Expected Rate of Return % % 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 if the two scenarios for the market return are equally likely? Also, assume a T-Bill rate of 5%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Consider the following table, which gives a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the market: Market Return 5% 26 Aggressive Stock -3% 38 Defensive Stock 5% 9 a. What are the betas of the two stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Aggressive stock Defensive stock Beta (9.00) 0.00 b. What is the expected rate of return on each stock if the two scenarios for the market return are equally likely to be 5% or 26%? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Aggressive stock Defensive stock Expected Rate of Return % % 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 if the two scenarios for the market return are equally likely? Also, assume a T-Bill rate of 5%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)