Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an aggressive stock A, and a defensive stock D. Rate of Return Aggressive Defensive Scenario Market Stock A Stock D Bust -8 -108 -68 Boom 25 30 21 a. Find the beta of each stock. (Round your answers to 2 decimal places.) Beta Stock A Stock D b. If each scenario is equally likely, find the expected rate of return on the market portfolio and on each stock. (Enter your answers as a whole percent.) Market portfolio Stock A Stock D Expected Rate of Return % % % c. If the T-bill rate is 5%, what does the CAPM say about the fair expected rate of return on the two stocks? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places) Expected Rate of Return % Stock |A Stock D % d. Which stock seems to be a better buy on the basis of your answers to (a) through (c)? Stock D Stock A