ed 1 ok 1 t 3 nces 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 Bust Boom Required: Market -8% 26 Required A 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-bill rate 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 (a) through (c)? Complete this question by entering your answers in the tabs below. Stock A Stock D Rate of Return Aggressive Stock A -13% 35 Required B Beta Defensive Stock D -6% 19 Required C Find the beta of each stock. Note: Round your answers to 2 decimal places. Required D < Required A Required B >