Consider the following table, which gives a security analyst's expected return on two stocks for two particular market retums: 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 5% or 25% ? c. 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. d. Plot the two securities on the SML graph. What are the alphas of each? 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? 5. assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%. A share of stock sells for $50 today. It will pay a dividend of $6 per share at the end of the year, Its beta is 1.2. What do investors expect the stock to sell for at the end of the year