Two stocks for two particular market returns

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Reference no: EM132030657

The following gives an analyst's expected return on two stocks for two particular market returns.

Market Return Stock A Stock B

5% -6% 2%

25% 36% 12%

Part 1: What are the betas of the two stocks?

Part 2: If the T-bill rate is 6% and the market return is equally likely to be 5% or 25%, what is the of each stock.

Reference no: EM132030657

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