Exhibit 93
Use the Information Below for the Following Problem(S)
Stocks

Exhibit 9.3
Use the Information Below for the Following Problem(S)
Stocks A, B, and C have two risk factors with the following beta coefficients. The zero-beta return (??) = .025 and the risk premiums for the two factors are (??) = .12 and (??) = .10.
$$\begin{array} { c c c } \text { Stack } & \text { Factor } 1 w _ { i 1 } & \text { Factor } 2 w _ { i 2 } \\\hline \mathrm { A } & - 0.25 & 1.1 \\\mathrm {~B} & - 0.05 & 0.9 \\\mathrm { C } & 0.01 & 0.6\end{array}$$
-Refer to Exhibit 9.3.Calculate the expected returns for stocks A,B,C.
    A   B     C

A) 0.082  0.091  0.033
B) 0.105  0.109  0.032
C) 0.132  0.128  0.033
D) 0.165  0.121  0.032
E) 0.850  0.850  0.610