Exhibit 92
Use the Information Below for the Following Problem(S)
Consider

question 38

Multiple Choice

Exhibit 9.2
Use the Information Below for the Following Problem(S)
Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas) .
$$\begin{array} { c c c } \text { Stack } & \text { Factor 1 Londine } & \text { Factor } 2 \text { Londing } \\\hline X & - [ .55 & 1.2 \\Y & - [ .10 & 0.85 \\Z & 0.35 & 0.5\end{array}$$
The zero-beta return (??) = 3%, and the risk premia are ?? = 10%, ?? = 8%. Assume that all three stocks are currently priced at $50.
-Refer to Exhibit 9.2.The expected prices one year from now for stocks X,Y,and Z are

• A) $53.55, $54.4, $55.25
• B) $45.35, $54.4, $55.25
• C) $55.55, $56.35, $57.15
• D) $50, $50, $50
• E) $51.35, $47.79, $51.58.

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Definitions:

Infant

A minor; a person under the legal age of majority.

Contract

A legal agreement among two or more parties that is binding and enforceable by the legal system.

Age of Majority

The legally defined age at which an individual is recognized as an adult and is capable of assuming responsibility for their actions in civil and criminal law.

Breach of Contract

Occurs when one party fails to fulfill their duties or obligations as per the terms of a contract, potentially leading to legal action for damages or enforcement.