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?