4. The future of the economy has two and only two scenarios. The table below gives the returns in the next month of the market portfolio and two individual stocks under each scenario. Assume that the T-bill rate is 5%. Are these two stocks fairly priced? Explain your results based on the Capital Asset Pricing Model. (10 marks) Probability 0.3 0.7 Market Return 5% 25% Aggressive Stock -2% 38% Defensive Stock 6% 12%