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Consider the following table, which gives a security analyst's expected return on two stocks for two...

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Finance

Consider the following table, which gives a security analyst'sexpected return on two stocks for two particular marketreturns:

  Market ReturnAggressive StockDefensive Stock
6.76%3.76%2.01%
21.2630.5113.76

  

Required:
(a)What are the betas of the two stocks? (Round youranswers to 2 decimal places.)
  Beta A   
  Beta D   
(b)

What is the expected rate of return on each stock if the marketreturn is equally likely to be 6.76% or 21.26%? (Round youranswers to 2 decimal places. Omit the "%" sign in yourresponse.)

  Rate of return on A%   
  Rate of return on D%   

  

(c)

What is the expected rate of return for the market, if theT-bill rate is 9.76%, and the market return is equally likely to be6.76% or 21.26%? (Round your answer to 2 decimal places.Omit the "%" sign in your response.)

  Expected rate of return%   

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