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
\table[[,Probablility,Narket Return,Ageressive,Stock],[Scenarlo,Stock,,,],[1,0.5,35,2,3.55],[2,0.5,20,32,14]]
Required:
a. What are the betas of the two stocks?
Note: Round your answers to 2 decimal places.
\table[[BetaA],[Beta D]]
b. What is the expected rate of return on each stock?
Note: Round your answers to 2 decimal places.
\table[[Rate of retum ion A],[Rate of setum ion D]]
c. If the T-bill rate is 8%, what are the alphas of the two stocks?
Note: Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicabed b Round your answers to 1 decimel ploce.
\table[[AphaA,5],[Rpha D,5]]
Prex
7 of 15
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Consider the following table, which gives a

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