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21. Consider the following table which gives a security analyst's expected return on two stocks for two particular market returns: (9 points) Aggressive Defensive Market

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21. Consider the following table which gives a security analyst's expected return on two stocks for two particular market returns: (9 points) Aggressive Defensive Market return stock stock 5.0% 2.0% 4.0% 20.0% 32.0% 14.0% a. What are the betas of the two stocks? b. What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%? c. If the t-bill rate is 8% and the market return is equally likely to be 5% or 20%, draw the SML for the economy d. Plot the two securities on the SML graph. What are the alphas of each

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