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Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 5% Aggressive Stock -2%

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Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: Market Return 5% Aggressive Stock -2% 38 Defensive Stock 6% 25 12 a. What are the betas of the two stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Beta Aggressive stock Defensive stock b, what is the expected rate of return on each stock if the market return is equally likely to be 5% or 25%? (Do not round intermediate calculations.) Expected Rate of Return Aggressive stock Defensive stock

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