Consider the following table, which gives a security analysts expected return on two stocks in two particular scenarios for the rate of return on the market:

Market Return	Aggressive Stock	Defensive Stock
5%	-2%	6%
25	38	12

1. If the T bill rate is 6% and the market return Is equally likely to be 5% or 25% draw the SML for this economy.

2. Plot the two security on the SML graph. What are the alphas of each?