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Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas). The zero-beta return (I0)=3%, and

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Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas). The zero-beta return (I0)=3%, and the risk premia are I1=10%,I2=8%. Assume that all three stocks are currently priced at $50. Calculate the expected returns for stock X, stock Y, and stock Z (Keep 3 decimals) Question 2 1 pts Use the numbers and calculated results from Q#1, calculate the expected prices one year from now for stocks

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