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

8% 2.9% 4.7%

20 29 12

a.What are the betas of the two stocks?(Round your answers to 2 decimal places.)

BetaA. _______

BetaD. _______

b.What is the expected rate of return on each stock if the market return is equally likely to be 8% or 20%?(Round your answers to 2 decimal places.)

Rate of return onA _______%

Rate of return onD _______%

c.If the T-bill rate is 8%, and the market return is equally likely to be 8% or 20%, what are the alphas of the two stocks?(Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

AlphaA ______%

AlphaD _______%