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

question 21

Multiple Choice

Under the following conditions, what are the expected returns for stocks Y and Z?

• A) 12.0 percent and 13.3 percent
• B) 13.5 percent and 14.2 percent
• C) 13.9 percent and 15.6 percent
• D) 14.0 percent and 16.9 percent
• E) 15.8 percent and 17.3 percent