Finance Answer all parts please with working (No CHATGPT ANSWERS)

You want to evaluate the stocks X and Y using the data in the table below. The risk-free rate, rf , is 3%

(a) Suppose youre planning to use either X or Y as your entire risky investment. Which would you choose and why?

(b) Suppose youre planning to use either X or Y to exploit mispricing in the market. Which would you choose and why?

(c) Now form a new portfolio, Z, by taking a leveraged position in asset X. Specifically, invest 150% of your wealth in asset X and finance it with an appropriate short position in the risk- free asset. What is the of asset Z?

\begin{tabular}{cccc} \hline Asset & E[r] & & \\ \hline X & 12% & 1.25 & 30% \\ Y & 8% & 0.60 & 20% \\ M & 9% & 1.00 & 15% \\ \hline \end{tabular} \begin{tabular}{cccc} \hline Asset & E[r] & & \\ \hline X & 12% & 1.25 & 30% \\ Y & 8% & 0.60 & 20% \\ M & 9% & 1.00 & 15% \\ \hline \end{tabular}