Under the following conditions, what are the expected returns for stocks X and Y?

l⁰ = 0.05

b_x,1 = 0.90

k₁ = 0.03

b_x,2 = 1.60

k₂ = 0.04

b_y,1 = 1.50

b_y,2 = 0.85

a.

14.1 percent and 12.9 percent

b.

12.5 percent and 19.5 percent

c.

19.5 percent and 18.5 percent

d.

21.2 percent and 18.5 percent

e.

11.5 percent and 15.5 percent