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

Multiple Choice

Under the following conditions, what are the expected returns for stocks Y and Z? $$\begin{array} { l l } \lambda ^ { 0 } = 0.05 & b _ { y , 1 } = 0.75 \\k _ { 1 } = 0.06 & b _ { y , 2 } = 1.35 \\k _ { 2 } = 0.05 & b _ { z , 1 } = 1.5 \\& b _ { z , 2 } = 0.85\end{array}$$

A) 17.61% and 13.23%
B) 16.25% and 18.25%
C) 13.24% and 28.46%
D) 14.83% and 17.69%
E) None of the above