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

question 40

Multiple Choice

Under the following conditions,what are the expected returns for stocks A and B?
$\begin{array}{ll}\lambda^{0}=0.03 & \mathrm{~b}_{\mathrm{a}, 1}=1.5 \\\mathrm{k}_{1}=0.09 & \mathrm{~b}_{\mathrm{a}, 2}=0.8 \\\mathrm{k}_{2}=0.07 & \mathrm{~b}_{\mathrm{b}, 1}=1.20 \\& \mathrm{~b}_{\mathrm{b}, 2}=0.6\end{array}$

• A) 24.8% and 19.7%
• B) 22.1% and 18.0%
• C) 20.3% and 17.8%
• D) 19.9% and 16.9%
• E) 18.7% and 15.3%

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Definitions:

Injection Molding

The method of creating parts through the injection of molten substances into a mold.

Capability Index

A statistical tool used to determine the capability of a manufacturing process to meet its specified limits.

Process

A series of actions or steps taken in order to achieve a particular outcome or result.

Capability Index

A statistical measure that quantifies the performance of a process in relation to specified limits or specifications.