2 Catculate alpha beta for ONGC stock An investor has analyzed a share for a one year...

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$2$ Catculate alpha beta for ONGC stock

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An investor has analyzed a share for a one year holding period. The share is currently selling for Rs.43 but pays no dividends and there is a fifty-fifty chance that the share will sell for either Rs.55 or Rs.60 by the year end. What is the expected return and risk if 250 shares are acquired with 80% borrowed funds? Assume the cost of borrowed funds to be 12%. (Ignore commissions and taxes) Q.2) Monthly return data (in %) for ONGC stock and the NSE index for a 12-month period are presented below: MONTH 1 ONGC -0.75 NSE Index -0.35 2 5.45 -0.49 3 -3.05 1.03 4 341 1.64 5 9.13 6.67 6 2.36 1.13 7 0.42 0.72 8 5.51 0.84 9 16.80 4.05 10 2.60 1.21 22 281 0.29 171 1.96 iets for ONGC stock stest to move sap by 15 next month. How much return would you expect from ONGC An investor has analyzed a share for a one year holding period. The share is currently selling for Rs.43 but pays no dividends and there is a fifty-fifty chance that the share will sell for either Rs.55 or Rs.60 by the year end. What is the expected return and risk if 250 shares are acquired with 80% borrowed funds? Assume the cost of borrowed funds to be 12%. (Ignore commissions and taxes) Q.2) Monthly return data (in %) for ONGC stock and the NSE index for a 12-month period are presented below: MONTH 1 ONGC -0.75 NSE Index -0.35 2 5.45 -0.49 3 -3.05 1.03 4 341 1.64 5 9.13 6.67 6 2.36 1.13 7 0.42 0.72 8 5.51 0.84 9 16.80 4.05 10 2.60 1.21 22 281 0.29 171 1.96 iets for ONGC stock stest to move sap by 15 next month. How much return would you expect from ONGC