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Q2) Consider the following table, which gives a security analyst's expected return on two stocks in two particular scenarios for the rate of return on

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Q2) Consider the following table, which gives a security analyst's expected return on two stocks in two particular scenarios for the rate of return on the market: Scenarios Market Return Aggressive Stock Defensive Stock 1 5% -2% 6% 2 2 25 % 38% 12% a) What are the betas of the two stocks? (5 points) b) Plot the two securities on the SML graph. Assume that T-bill rate is 6%. (5 points) c) What are the alphas of each? (5 points)

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