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.) Return of Beta A = _________% Return of Beta D = _________% c. If the T-bill rate is 7%, 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.) Alpha A = ______________% Alpha D = ______________%