Question: Consider the following table, which gives a security analyst's expected return on two stocks and the market inde table [ [ , Probablility,Narket Return,Ageressive,Stock
Consider the following table, which gives a security analyst's expected return on two stocks and the market inde
tableProbablility,Narket Return,Ageressive,StockScenarloStock,,,
Required:
a What are the betas of the two stocks?
Note: Round your answers to decimal places.
tableBetaABeta D
b What is the expected rate of return on each stock?
Note: Round your answers to decimal places.
tableRate of retum ion ARate of setum ion D
c If the Tbill rate is what are the alphas of the two stocks?
Note: Leave no cells blank be certain to enter wherever required. Negative values should be indicabed b Round your answers to decimel ploce.
tableAphaARpha D
Prex
of
Nex
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