Stocks A, B, and C have two risk factors with the following beta coefficients. The zero-beta return (₀) = .025 and the risk premiums for the two factors are (₁) = .12 and (₀) = .10.

Stock	Factor 1 b i1	Factor 2 b i2
A	-0.25	1.1
B	-0.05	0.9
C	0.01	0.6

CalCa;Calculate the expected returns for stocks A, B, C.

	A	B	C
I	0.082	0.091	0.033
II	0.105	0.109	0.032
III	0.132	0.128	0.033
IV	0.165	0.121	0.032
V	0.850	0.850	0.610

	A.	I
	B.	II
	C.	III
	D.	IV
	E.	V