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consider the touwing vanie, wnich gives a security analysts expected return on two stocks and the market index in two scenarios Scenario Probability Market Maturn

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consider the touwing vanie, wnich gives a security analysts expected return on two stocks and the market index in two scenarios Scenario Probability Market Maturn 0.5 70 0.5 20 Aggressive Stock 3.20 31 Defensive Stock 5.08 14 Required: a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Answer is complete and correct. 2.14 BARA Beta 0.69 b. What is the expected rate of return on each stock? (Round your answers to 2 decimal places.) Answer is complete and correct Rate of return on A Rate of return on D 17.10 3.50 % c. If the T-bill rate is 7%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to 2 decimal places.) Alpha A Alpha D

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