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

Market Return		Aggressive Stock		Defensive Stock
8	%	3.9	%	5.7	%
20		30		14

a. What are the betas of the two stocks? (Round your answers to 2 decimal places.)

Beta A:

Beta D:

b. What is the expected rate of return on each stock if the market return is equally likely to be 8% or 20%? (Round your answers to 2 decimal places.)

Rate of Return on A:

Rate of return on D:

c. If the T-bill rate is 8%, and the market return is equally likely to be 8% or 20%, 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.)

Alpha A:

Alpha D: