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Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an aggressive stock A , and

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.
Scenario Rate of Return
Market Aggressive Stock A Defensive Stock D
Bust 5%9%3%
Boom 122110
Required:
Find the beta of each stock.
If each scenario is equally likely, find the expected rate of return on the market portfolio and on each stock.
If the T-bill rate is 4%, what does the CAPM say about the fair expected rate of return on the two stocks?
Which stock seems to be a better buy on the basis of your answers to (a) through (c)?

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