Exhibit 82
Use the Information Below for the Following Problem(S)
You

Exhibit 8.2
Use the Information Below for the Following Problem(S)
You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.
$$\begin{array} { c c c c c } \text { Stack } & \text { Eeta } & \begin{array} { c } \text { Current } \\\text { Price }\end{array} & \begin{array} { c } \text { Expected } \\\text { Price }\end{array} & \begin{array} { c } \text { Experted } \\\text { Dividend }\end{array} \\\hline \mathbf { X } & 1.25 & \$ 20 & \$ 23 & \$ 1.25 \\\mathbf { Y } & 1.50 & \$ 27 & \$ 29 & \$ 0.25 \\\mathbf { Z } & 0.90 & \$ 35 & \$ 38 & \$ 1.00\end{array}$$
-Refer to Exhibit 8.2.What are the estimated rates of return for the three stocks (in the order X,Y,Z) ?

A) 21.25%, 8.33%, 11.43%
B) 6.20%, 2.20%, 8.20%
C) 16.50%, 5.50%, 22.00%
D) 9.25%, 10.5%, 7.5%
E) 15.00%, 3.50%, 7.30%