Question: Exhibit 8.2 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

 Exhibit 8.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) You

Exhibit 8.2 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. Stock Beta 1.25 Y 1.50 Z 0.90 Current Price $20 $27 Expected Price $23 $29 $38 Expected Dividend $1.25 $0.25 $1.00 $35 13. a. Refer to Exhibit 8.2. What are the expected (required) rates of return for the three stocks (in the order X, Y, Z)? 16.50%, 5.50%, 22.00% b. 9.25%, 10.5%, 7.5% 21.25%, 8.33%, 11.43% d. 6.20%, 2.20%, 8.20% e. 15.00%, 3.50%, 7.30% C. 14. Refer to Exhibit 8.2. What are the estimated rates of return for the three stocks in the order X, Y, Z)? 21.25%, 8.33%, 11.43% b. 6.20%, 2.20%, 8.20% c. 16.50%, 5.50%, 22.00% a. d. e. 9.25%, 10.5%, 7.5% 15.00%, 3.50%, 7.30%

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