Exhibit 84
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 44

Short Answer

Exhibit 8.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } \text { Stock } & \text { Beta } & \text { CurrentPrice } & \text { Exp ected Price } & \text { Expected Dividend } \\\hline \mathrm { X } & 0.8 & \$ 12.50 & \$ 13.10 & \$ 0.80 \\\mathrm { Y } & 1.1 & \$ 8.25 & \$ 9.76 & \$ 0.20 \\\mathrm { Z } & 2.1 & \$ 25.70 & \$ 30.04 & \$ 0.00\end{array}$$
-Refer to Exhibit 8.4. If the expected return on the market is 11.5% and the risk-free rate of return is 4.5%, then what are the required rates of return for stocks X, Y, and Z based on the CAPM? $\begin{array}{lrrr}&X&Y&Z\\\text { a. } & 4.8 \% & 18.3 \% & 16.9 \% \\\text { b. } & 7.2 \% & 20.7 \% & 22.3 \% \\\text { c. } & 10.7 \% & 17.5 \% & 14.4 \% \\\text { d. } & 10.1 \% & 12.2 \% & 19.2 \% \\\text { e. } & 11.1 \% & 12.2 \% & 21.3 \%\end{array}$

---

Definitions:

Social Relationships

The connections between individuals shaped by social structures, interactions, and personal affiliations, impacting one's experiences and societal integration.

Quantitative

Pertaining to the measurement or quantity of something, often involving statistical, mathematical, or numerical data analysis.

Exploratory Research

Exploratory research is a methodological approach that aims to investigate a problem or topic that is not well understood, often to formulate more precise questions or hypotheses.

Participant-observation

A qualitative research method in which the researcher becomes involved in the community or context being studied while observing its dynamics.