Consider the following table, which gives a security analysts expected returns on the two stocks for the two particular market returns

Market return	Aggressive stock	Defensive stock
5%	-20%	3%
20%	60%	15%
Risk-free rate	5%

a) What are the betas of the stocks?

b) What is the expected return on each stock if the market return is equally likely to be 5% and 20%?

c) What are the alphas of the each stock?

d) What should be cost of capital of all equity financed project by the aggressive firm for a project with the risk characteristics of defensive firms stock?