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Problem 7-08 Consider the following data for two risk factors (1 and 2) and two...

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Problem 7-08 Consider the following data for two risk factors (1 and 2) and two securities (3 and L): A2=0.06A1=0.032=0.05b21=0.70b2=1.45b2=1.60b2=2.15 a. Compute the expected returns for both secunities. Round your answers to two decimal places. Expected return for security 1: Expected return for security Lt b. Suppose that Security J is currentfy priced at $23.25 while the price of Security L is $13.00. Further, it is expected that both securities will pay a dindend of 50.80 during the coming year. What is the experted orice of each security one year from now? Do not round intermeciate calculations. Round your answers to the hearest cent. Expected price for security j: 5 Expected price for security ti $

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