Exhibit 84
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Exhibit 8.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c c c c } \text { Stock } & \text { Beta } & \text { CurrentPrice } & \text { Exp ected Price } & \text { Expected Dividend } \\\hline \mathrm { X } & 0.8 & \$ 12.50 & \$ 13.10 & \$ 0.80 \\\mathrm { Y } & 1.1 & \$ 8.25 & \$ 9.76 & \$ 0.20 \\\mathrm { Z } & 2.1 & \$ 25.70 & \$ 30.04 & \$ 0.00\end{array}$$
-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? $\begin{array}{lrrr}&X&Y&Z\\\text { a. } & 4.8 \% & 18.3 \% & 16.9 \% \\\text { b. } & 7.2 \% & 20.7 \% & 22.3 \% \\\text { c. } & 10.7 \% & 17.5 \% & 14.4 \% \\\text { d. } & 10.1 \% & 12.2 \% & 19.2 \% \\\text { e. } & 11.1 \% & 12.2 \% & 21.3 \%\end{array}$