Market Return-' 4%+' 20% Stock A Stock B 5% 30% 12%- a. Calculate the betas of the two stocks? It can be calculated by change of stock return divided by changes of market return.*- b. There is 50% chance that the market will have 4% return and 50% chance of having 20%. Calculate the expected returns of A, B and the market.* C. Given the risk free is 6%, calculate the alphas for both stocks