schweser practice exam Exam 2, morning session question - answers

For only those who have already taken this exam Exam 2, Morning Session : Q 14 & 15 Is there a typo in the answers? Can someone help in explanation? Ps. Don;t want to repeat the question here for the sake of all who are still to take this test

vol 1 or 2?

If Vol 1, there is an errata…you can find all of them on Schweser’s website: Q14 Add: Assume for this question that De Jong has changed her estimate of the expected return on the market so that the required return on equity changes to 8%" This has been discussed many times on Analyst Forum…try the Search function

thanks go4it