Question: Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 8% 20 Aggressive Stock

 Consider the following table, which gives a security analyst's expected return

Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 8% 20 Aggressive Stock 3.0% 31 Defensive Stock 4.8% 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 8% 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 7%, and the market retum 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.) Alpha A Alpha D

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