E(RA) (1.1)A1+ (0.8)^ E(Re) = (0.7)1 + (0.6)/2 E(R) (1.5) + (1.0) a. If A = 3% and A2 = 5%, what are the prices expected next year for each of the stocks? Assume that all three stocks currently sell for $20 and will not pay dividend in the next year. Do not round intermediate calculations. Round your answers to the nearest cent. Expected price for Stock A: $ Expected price for Stock B: $ Expected price for Stock C: $ b. Suppose that you know that next year the prices for Stocks A, B, and C will actually be $34.44, $30.26, and $30.50. Assume that you can use the proceeds from any necessary short sale. Determine the riskless, arbitrage investment to take advantage of these mispriced securities. In order to create a riskless arbitrage investment, an investor would-Select- Va riskless arbitrage investment. What is the profit from your investment? Round your answer to the nearest cent. $