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

$7\%4\%5\%$

$26379$

a$.$ What are the betas of the two stocks? $($Do not round intermediate calculations. Round your answers to $1$ decimal place.$)$

Beta

Aggressive Stock

Defensive Stock

b$.$ What is the expected rate of return on each stock if the market return is equally likely to be $7\%$ or $26\%?($Do not round intermediate calculations. Round your answers to $1$ decimal place.$)$

Expected Rate

of Return

Aggressive Stock

$\%$

Defensive Stock

$\%$

c$.$ This part of the question is not part of your Connect assignment.

d$.$ This part of the question is not part of your Connect assignment.

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 market return is equally likely to be $7\%$ or $26\%?$ Also, assume a T$-$Bill rate of $5\%.($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Hurdle rate

$\%$