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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 stok A and a
Consider the following two scenarios for the economy and the expected returns in each scenario for the market portfolio, an aggressive stok A and a defensive stock D Scenario Market Aggressive Defensive Stock A Stock D -7% a. Find the beta of each stock (Round your answers to 2 decimal places.) vo b. If each scenano is equally likely, find the expected rate of return on the market portfolio and on each stock a whole percent.) Expected Rate of Return Stok A ct the bill role is what does the CAPM say about the fair expected rate of return on the two stocks (Do Prey 3 12 Next > c. the Tbill rate is 3%, what does the CAPM say about the fair expected rate of return on the two stocks? Do intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected Rate of Return StockA Slock D
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