Consider the following two scenarios for the economy and the expected returns in each scenario...

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Accounting

image Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an agressive stock A, and a defensive stock D. Required: a. Find the beta of each stock. b. If each scenario is equally likely, find the expected rate of return on the market portfolio and on each 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? d. Which stock seems to be a better buy on the basis of your answers to (a) through (c)? Complete this question by entering your answers in the tabs below. If the T-bill rate is 4%, what does the CAPM say about the fair expected rate of return on the two stocks? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places

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