Question: Consider the following table. Which glves a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the

 Consider the following table. Which glves a security analyst's expected return
on two stocks in two particular scenarios for the rate of return

Consider the following table. Which glves a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the market. a. What are the betas of the fwo stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. What is the expected rate of return on each stock if the two scenarios for the market return are equally likely to be 5% or 24% ? (Do not round intermediate calculations. Round your answers to 1 decimal place.) e. What hurdle rate should be used by the management of the aggressive firm for a project with the risk characteristics of the defensive firm's stock if the two scenarios for the market return are equally likely? Also, assume a T-Bill rate of 4%. (Do not round intermediate caiculations. Round your answer to 2 decimal places.) Consider the following table. Which glves a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the market. a. What are the betas of the fwo stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. What is the expected rate of return on each stock if the two scenarios for the market return are equally likely to be 5% or 24% ? (Do not round intermediate calculations. Round your answers to 1 decimal place.) e. What hurdle rate should be used by the management of the aggressive firm for a project with the risk characteristics of the defensive firm's stock if the two scenarios for the market return are equally likely? Also, assume a T-Bill rate of 4%. (Do not round intermediate caiculations. Round your answer to 2 decimal places.)

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