The after table gives an examiners normal profit for two, Ask an Expert

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the after table gives an examiners normal profit for two stocks for specific business sector returns.

Business Return Aggressive Stock Defensive Stock

5% -5% 10%

25% 45% 16%

(i) What is the proportion of the beta of the forceful stock to the beta of the protective stock?

(ii) If the danger free rate is 7% and the business return is just as prone to be 5% and 25% what is the business sector hazard premium?

What is the alpha of the forceful stock?

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