For this question, do NOT assume the CAPM holds The following table gives a security analyst's estimates of expected returns for two shares, Aggressive and Defensive, and the market for two equally likely scenarios Scenario Market Return Aggressive share Defensive share 1 5 2 3 5 2 20 32 14 What are the betas of the two shares If the risk free rate is 2 , what is the alpha of each share Please provide detailed manual step by step solutions Cannot use excel

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Question: For this question, do NOT assume the CAPM holds. The following table gives a security analyst's estimates of expected returns for two shares, Aggressive and

For this question, do NOT assume the CAPM holds.

The following table gives a security analyst's estimates of expected returns for two shares, Aggressive and Defensive, and the market for two equally-likely scenarios:

Scenario	Market Return	Aggressive share	Defensive share
1	5%	2%	3.5%
2	20%	32%	14%

What are the betas of the two shares?

If the risk-free rate is 2%, what is the alpha of each share?

Please provide detailed manual step-by-step solutions. Cannot use excel

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