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Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenarios: Required: a. What are
Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenarios: Required: a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. b. What is the expected rate of return on each stock? (Round your answers to 2 decimal places.) c. If the T-bill rate is 8%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
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