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Expected return on two stocks for two particular market returns: Market return/Aggressive stock/Defensive St        5%                 &nbsp

Expected return on two stocks for two particular market returns:

Market return/Aggressive stock/Defensive St
       5%                     -2%                         6%

       25%                   38%                       12%

a. What are the beta's 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 25%?

c. If the t-bill rate is 6% and the market return is equally likely to be 5% or 25%, draw the SML for this economy.

please show all work

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