Problem 12-14 Expected Returns (LO2) Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio an aggressive stock A, and a defensive stock of Return Aive Defensive Scenari Market Stock Stock ut - 32 a. Find the beta of each stock. (Round your answers to 2 decimal places) SA Stock b. If each scenario is equally likely find the expected rate of return on the market portfolio and on each stock. (Enter your answers as a whole percent.) Expected Rate of Return Marketportfolio Stock A Stock c. If the T-bill rate is 4%, what does the CAPM say about the fair expected rate of return on the two stocks? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected Rate of Return Stock A Stock D d. Which stock seems to be a better buy on the basis of your answers to (a) through (c? Stock Stock A