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% 3.0% 4.8%

20 31 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.)

Return of Beta A = _________%

Return of Beta D = _________%

c.If the T-bill rate is 7%, 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 = ______________%