Consider the following two scenarios for the economy and the returns in each scenario for the market portfolio, an aggressive stock A, and a defensive stock D. Scernario Market Agressive Stock A Defensive Stock D Bust -8% -10% -6% Boom 27 41 20

Scenario	Market	Agressive Stock A	Defensive Stock C
Bust	-8%	-10%	-6%
Boom	27	41	20

If the T-bill rate is 5%, what does the CAPM say about the fair expected rate of return on the two stocks?

	Expected Rate of Return
Stock A	%
Stock D	%