Under the following conditions, what are the expected returns for stocks Y and Z? $$\begin{array} { l l }
\lambda ^ { 0 } = 0.04 & b _ { y , 1 } = 0.5 \
k _ { 1 } = 0.07 & b _ { y , 2 } = 1.3 \
k _ { 2 } = 0.05 & b _ { z , 1 } = 1.2 \
& b _ { z , 2 } = 0.9
\end{array}$$
A)12.0% and 13.3%
B)13.5% and 14.2%
C)13.9% and 15.6%
D)14.0% and 16.9%
E)15.8% and 17.3%

Question

Under the following conditions, what are the expected returns for stocks Y and Z? $$\begin{array} { l l } 
\lambda ^ { 0 } = 0.04 & b _ { y , 1 } = 0.5 \
k _ { 1 } = 0.07 & b _ { y , 2 } = 1.3 \
k _ { 2 } = 0.05 & b _ { z , 1 } = 1.2 \
& b _ { z , 2 } = 0.9
\end{array}$$
A)12.0% and 13.3%
B)13.5% and 14.2%
C)13.9% and 15.6%
D)14.0% and 16.9%
E)15.8% and 17.3%

Quizplus · Accepted Answer

The Answer of Under the following conditions, what are the expected returns for stocks Y and Z? $$\begin{array} { l l } 
\lambda ^ { 0 } = 0.04 & b _ { y , 1 } = 0.5 \
k _ { 1 } = 0.07 & b _ { y , 2 } = 1.3 \
k _ { 2 } = 0.05 & b _ { z , 1 } = 1.2 \
& b _ { z , 2 } = 0.9
\end{array}$$
A)12.0% and 13.3%
B)13.5% and 14.2%
C)13.9% and 15.6%
D)14.0% and 16.9%
E)15.8% and 17.3%

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