3

Consider the following table, which gives a security analyst's expected return on two stocks for two particular market retums: Market Return Aggressive Stock Defensive Stock 8% 3.4% 5.2% 20 32 15 a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Beta A Beta D b. What is the expected rate of return on each stock if the market return is equally likely to be 8% or 20%? (Round your answers to 2 decim Rate of return on A Rate of return on D