Question: 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

 Consider the following table, which gives a security analyst's expected return
on two stocks for two particular market returns: Market Return Aggressive Stock

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 3.5% 32 29 5% 20 14 a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Beta A Beta D b. What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%? (Round your answers to 2 decimal places.) % Rate of return on A Rate of return on D c. If the T-bill rate is 8%, and the market return is equally likely to be 5% or 20%, what are the alphas of the two stocks? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 1 decimal place.) Alpha A Alpha D %

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