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Under the Following Conditions, What Are the Expected Returns for Stocks

question 44

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Under the following conditions, what are the expected returns for stocks A and C? λ0=0.07ba,1=0.95k1=0.04ba,2=1.10k2=0.03bc,1=1.10bc,2=2.35\begin{array} { l l } \lambda ^ { 0 } = 0.07 & b _ { a , 1 } = 0.95 \\k _ { 1 } = 0.04 & b _ { a , 2 } = 1.10 \\k _ { 2 } = 0.03 & b _ { c , 1 } = 1.10 \\& b _ { c , 2 } = 2.35\end{array}


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