Solved

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

Question 26

Multiple Choice

Under the following conditions,what are the expected returns for stocks X and Y?
λ0=0.05bx,1=0.90k1=0.03bx,2=1.60k2=0.04by,1=1.50bv,2=0.85\begin{array}{ll}\lambda^{0}=0.05 & b_{x, 1}=0.90 \\k_{1}=0.03 & b_{x, 2}=1.60 \\k_{2}=0.04 & b_{\mathrm{y}, 1}=1.50 \\& b_{\mathrm{v}, 2}=0.85\end{array}


A) 14.1% and 12.9%
B) 12.5% and 19.5%
C) 19.5% and 18.5%
D) 21.2% and 18.5%
E) None of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions