a$.$ What are the betas of the two stocks? $($Do not round intermediate calculations. Round your answers to $1$ decimal place.$)$

Beta

Aggressive Stock

Defensive Stock

b$.$ What is the expected rate of return on each stock if the market return is equally likely to be $7\%$ or $21\%?($Do not round intermediate calculations. Round your answers to $1$ decimal place.$)$

Expected Rate

of Return

Aggressive Stock

$17\mathrm{.}00$

$\%$

Defensive Stock

$\%$

c$.$ This part of the question is not part of your Connect assignment.

d$.$ This part of the question is not part of your Connect assignment.

e$.$ What hurdle rate should be used by the management of the aggressive firm for a project with the risk characteristics of the defensive firm$$s stock if market return is equally likely to be $7\%$ or $21\%?$ Also, assume a T$-$Bill rate of $7\%.($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Hurdle rate

$\%$