If the risk free rate equals $4\%,$ and the expected rate on the market equals $9\%,$ find the required rate of return on Dell and HP$.$

Year

Market

Dell

HP

$1$

$30\%$

$26\%$

$47\%$

$2$

$7$

$15$

$-54$

$3$

$18$

$-14$

$15$

$4$

$-22$

$-15$

$7$

$5$

$-14$

$2$

$-28$

$6$

$10$

$-18$

$40$

$7$

$26$

$42$

$17$

$8$

$-10$

$30$

$-23$

$9$

$-3$

$-32$

$-4$

$10$

$38$

$28$

$75$

A$.$ Required$($Dell$)=8\%$; Required$($HP$)=9\%$

B$.$ Required$($Dell$)=9\mathrm{.}1\%$; Required$($HP$)=9\mathrm{.}2\%$

C$.$ Required$($Dell$)=6\mathrm{.}5\%$; Required$($HP$)=8\mathrm{.}8\%$

D$.$ Required$($Dell$)=7\%$; Required$($HP$)=10\mathrm{.}5\%$