Question: i need this now!!! 5 Initial: pected return for two stocks in two different market conditions: 15 pts. Market Return 6% 22% Stock Defensive Stock
5 Initial: pected return for two stocks in two different market conditions: 15 pts. Market Return 6% 22% Stock Defensive Stock 5.5% 4% 34% 14% a. What are the betas of the two stocks? o what isthe expected rate of return on each stock if the market return is equally likely to be 6% c. If t or 22%? he T-bill this economy. rate is 8%, and the market return is equally likely to be 6% or 22%, draw the SML for d. What are the alphas of each
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