Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns:

a$.$ What are the betas of the two stocks? $($Do not round intermediate calculations. Round your answers to $1$ decimal place.$)$

b$.$ What is the expected rate of return on each stock if the market return is equally likely to be $5\%$ or $27\%?($Do not round intermediate

calculations. Round your answers to $1$ decimal place.$)$

c$.$ This part of the question is not part of your Connect assignment.

d$.$ This part of the question is not part of your Connect assignment.

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 market return is equally likely to be $5\%$ or $27\%?$ Also, assume a T$-$Bill rate of $3\%.($Do not round intermediate

calculations. Round your answer to $2$ decimal places.$)$

Hurdle rate

$\%$