Exhibit 84
Use the Information Below for the Following Problem(S)

Exhibit 8.4
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c c c c } \text { Stack } & \text { Beta } & \text { Current Prica } & \text { Expertad Prica } & \text { Expertad Dividend } \\\hline \mathbf { X } & { [ .8 } & \$ 12.50 & \$ 13.10 & \$ 0.80 \\Y & 1.1 & \$ 2.25 & 9.76 & \$ 0.20 \\Z & 2.1 & \$ 25.70 & \$ 30.04 & \$ 0.00\end{array}$$
-Refer to Exhibit 8.4.If the expected return on the market is 11.5% and the risk-free rate of return is 4.5%,then what are the required rates of return for stocks X,Y,and Z based on the CAPM?
    X    Y      Z

A) 4.8%  18.3% 16.9%
B) 7.2%  20.7%  22.3%
C) 10.7%  17.5%  14.4%
D) 10.1%  12.2%  19.2%
E) 11.1%  12.2%  21.3%