Consider the following data for two risk factor and two securities $(M$ and $N)$:

${}_0=8$ per cent ${}_1=8\mathrm{.}2$ per cent ${}_2=3\mathrm{.}2$ per cent

$b_{M1}=0\mathrm{.}76b_{M2}=1\mathrm{.}90$

$b_{N1}=1\mathrm{.}72b_{N2}=2\mathrm{.}45$

Security M is currently priced at Rs$\mathrm{.}225$; security $N$ is currently priced at

Rs$\mathrm{.}150.$ anticipated prices of the security at year end are Rs$\mathrm{.}275$ and

Rs$\mathrm{.}175,$ respectively.

$($a$)$ Compute expected return of both securities$.$

$($b$)$What is the expected price of each security one year from now?