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Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: a. What are the betas of

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Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: a. What are the betas of the two stocks? b. What is the expected rate of return on each stock if the market return is equally likely to be 6% or 21%? 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 6% or 21%? Also, assume a T-Bill rate of 3%

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