Problem 12-14 Expected Returns (LO2) 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 Acressive Defensive Scenario Market Stock A Stock Bust -8% -113 Boom 30 40 -6X 24 1 + nco Required: a. Find the beta of each stock b. If each scenano is equally likely find the expected rate of return on the market portfolio and on each stock c. If the T-bill rate is 3%, 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 (@ Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Find the beta of each stock. (Round your answers to 2 decimal places.) Beta Stock A Stock Required B >