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Consider the following table, which gives a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the

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Consider the following table, which gives a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the market: Market Return Aggressive Stock Defensive Stock a. What are the betas of the two stocks? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Aggressive stock Defensive stock b. What is the expected rate of return on each stock if the two scenarios for the market return are equally likely to be 5% or 26%7(Do not round Intermediate calculations, Round your answers to 1 decimal place.) Expected Rate o Return Aggressive stock Defonivestock 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 the two scenarios for the market return are equally likely? Also, assume a T.Bull rate of 5% (Do not und intermediate calculations. Round your answer to 2 decimal places.) Hurdle rate

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