USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.

-Refer to Exhibit 7.2. What are the estimated rates of return for the three stocks (in the order X, Y, Z) ?

A) 21.25 percent, 8.33 percent, 11.43 percent
B) 6.20 percent, 2.20 percent, 8.20 percent
C) 16.50 percent, 5.50 percent, 22.00 percent
D) 9.25 percent, 10.5 percent, 7.5 percent
E) 15.00 percent, 3.50 percent, 7.30 percent