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

question 19

Multiple Choice

Under the following conditions,what are the expected returns for stocks Y and Z?
$\begin{array}{ll}\lambda^{0}=0.05 & \mathrm{~b}_{\mathrm{y}, 1}=0.75 \\\mathrm{k}_{1}=0.06 & \mathrm{~b}_{\mathrm{y}, 2}=1.35 \\\mathrm{k}_{2}=0.05 & \mathrm{~b}_{\mathrm{z}, 1}=1.5 \\& \mathrm{~b}_{\mathrm{z}, 2}=0.85\end{array}$

• A) 17.61% and 13.23%
• B) 16.25% and 18.25%
• C) 13.24% and 28.46%
• D) 14.83% and 17.69%
• E) None of the above

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