Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfollo, an aggressive stock A, and a defensive stock D. Scenario Bust Boon Rate of Return Aggressive Defensive Market Stock Stock -B1 13% 6% 25 35 19 Required: a. Find the beta of each stock b. If each scenario is equally likely find the expected rate of return on the market portfolio and on each stock c. If the T-bitrate is 5% what does the CAPM say about the fair expected rate of return on the two stocks? d. Which stock seems to be a better buy on the basis of your answers to (o) through (c)? Required A Required B Required Required Find the beta of each stock. (Round your answers to 2 decimal places.) Beta Stock A Stock D Required B > Required A Required B Required Required D 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 Stock D Expected Rate of Return % % % Complete this question by entering your answers in the tabs below. Required A Required B Required Required 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 % Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Which stock seems to be a better buy on the basis of your answers to (a) through (C)? Better buy