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 Market -8% 32 Stock D -6% 24 Stock A 8% Bust Boom 38 a. Find the beta of each stock. (Rund your answers t 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.) Expected Rate of Return Market portfolio Stock A Stock D c. If the T-bill rate is 4%, what does the CAPM say about the fair expected rate of return on the two stocks? (D calculatlons. Enter your answers as a percent rounded to 2 declmal places.) not round Intermediate 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)? O Stock D O Stock A