You have just started stock trading and hired a broker to provide you with recommendations. Suppose the rate of return on short-term government securities is about 2%, and the required rate of return for a portfolio with a beta of 1 is 11%. Based on her estimates, your broker provides you the following information on the two stocks that you are interested: Bear Tiger Beta 1.20 0.80 Expected return of Bear and Tiger 12% 10% based on your broker's estimation a. According to CAPM, what are the required rate of return of the two stocks? Keep two decimal places. Please show your work. %. Required return for Bear by CAPM Required return for Tiger by CAPM = Toolbar navigation B I U AV D% %. b. Compare your answers from part a and the expected return provided by your broker. What is the alpha of each firm? Please show your work. Alpha for Bear = Toolbar navigation BI U S A Alpha for Tiger = O% c. Which of the two stocks should you choose? Explain. I will choose because