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

Multiple Choice

Under the following conditions, what are the expected returns for stocks A and C?

$\begin{array}{ll}\lambda^{0}=0.07 & \mathrm{~b}_{\mathrm{a}, 1}=0.95 \\\mathrm{k}_{1}=0.04 & \mathrm{~b}_{\mathrm{a}, 2}=1.10 \\\mathrm{k}_{2}=0.03 & \mathrm{~b}_{c, 1}=1.10 \\&\mathrm{~b}_{\mathrm{c}, 2}=2.35\end{array}$

A) 14.1% and 17.65%
B) 14.1% and 18.45%
C) 17.65% and 18.45%
D) 18.45% and 17.52%
E) None of the above