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

Question

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

Quizplus · Accepted Answer

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

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