Scenario Probability Market Return 0.5 0.5 1 2 Beta A Beta D 8% 20 Rate of return on A Rate of return on D Required: a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Aggressive Stock 2.5% 27 Defensive Stock 4.3% 14 b. What is the expected rate of return on each stock? (Round your answers to 2 decimal places.) % % 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

Required: a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) b. What is the expected rate of return on each stock? (Round your answers to 2 decimal places.)