Question: Consider the following data for two risk factor ( 1 and 2) and two securities (J and K) (Mark 4) Bk2= 2.25 Biz = 1.40

Consider the following data for two risk factor ( 1 and 2) and two securities (J and K) (Mark 4)

Bk2= 2.25

Biz = 1.40

Bk1= 1.60

B = 0.80

A = 0.06

A = 0.02

A 2=0.04

a) Compute the expected returns for both securities.

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