A company has a 10 year annual return of 7,65% and standard deviation of 13,24%. I calculated AM( 0,1058) and GM( 0,0986)of the market index over 10 years.

The market risk i found was 13,12% and co relation coefficient is 0,87. how to find the beta for the company?

And then for the expected returns risk free rate is 2,5% i am not sure about what to use for the Rm in the Capm formula. how do i find the expected return?

Answer rating: 100% (QA)

Youve done well with the initial calculations Heres how to find the beta and expected return using t... View the full answer