Question: Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenarios: Required: a . What
Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenarios:
Required:
a What are the betas of the two stocks?
Note: Round your answers to decimal places.
b What is the expected rate of return on each stock?
Note: Round your answers to decimal places.
c If the Tbill rate is what are the alphas of the two stocks?
Note: Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to
decimal places.
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