Choose a Nepal Life Insurance Company that is listed in Nepal Stock Exchange. Collect necessary data to
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Question:
Choose a Nepal Life Insurance Company that is listed in Nepal Stock Exchange.
Collect necessary data to calculate the annual return of the that company. It is good to take yearend data for consistency. Cover at least years.
Collect market index data to calculate market return.
Collect riskfree rate data take day Tbills rate
a. Calculate beta of the company.
b. Use CAPM equation to calculate required rate of return.
c. Compare it with the expected return.
d. Decide whether your company is fairly priced or not. Will you buy the stock?
Related Book For
An Introduction to Management Science Quantitative Approaches to Decision Making
ISBN: 978-1111823610
14th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
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