Question: RRF = 8% RM = 15% BA = 0.5 BB = 1.0 BC = 1.5 Find the expected returns of stock A, B & C.

RRF = 8%

RM = 15%

BA = 0.5

BB = 1.0

BC = 1.5

Find the expected returns of stock A, B & C.

A.

A = 11.5%

B = 15.0%

C = 18.5%

B.

A = 10.5%

B = 13.5%

C = 17.0%

C.

A = 12%

B = 15.5%

C = 19%

D.

A = 10.5%

B = 12%

C = 14.5%

E.

None of the above

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