16. The following information relates to the expected returns of shares of two companies held by Go-Go Ltd. in the securities exchange:

Market return (%)	Aggressive company share (%)	Defensive company share (%)
6	2	8
20	30	16

Additional information:

1. The risk-free rate of return is 7%.

2. The 6% and 20% market rate of returns have an equal chance of occurrence.

Required:

i). Compute the beta for each companys shares.

ii). Calculate the expected return on each companys shares.

iii). Compute the security market line (SML).

iv). Compute the Alpha for each companys shares.