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Please see photo attached Problem 7-12 (Algo) Consider the following table, which gives a security analyst's expected return on two stocks and the market index

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Problem 7-12 (Algo) Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenarios: Aggressive Defensive Scenario Probability Market Return Stock Stock 0.5 2.58 4. 38 0 . 5 20 27 14 Required: a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Beta A Beta D b. What is the expected rate of return on each stock? (Round your answers to 2 decimal places.) Rate of return on A % Rate of return on D % c. If the T-bill rate is 8%, 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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