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Consider the following table, which gives a security analysts expected retun on two stocks for two particular market returns: 5% 21 2.4% 27 18 a.

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Consider the following table, which gives a security analysts expected retun on two stocks for two particular market returns: 5% 21 2.4% 27 18 a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Beta A Beta D 1.54 0.86 b.What is the expected rate of return on each stock if the market retum is equally likely to be 5% or 21%? Round your answers to 2 decimal places Rate of retum on A Rate of return on D 14.7 % 11.2 % c r the T-ba rate is 7%, and the market return is equaPy ikety to be 5% or 21%, what are the alphas orne 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 416 % -2.42 %

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