Question: attach excel in the answer QM0.2 a) The following table shows bets for several companies. Calculate each stock's expected rate of return in CAPM. Assume
QM0.2 a) The following table shows bets for several companies. Calculate each stock's expected rate of return in CAPM. Assume the risk free rate of interestis 9 percent. Use a 6 percent risk premium for the market portfolio Beta Company MICRO 1.75 05 Pleer bl at the expected rate of return on the market portfolios 16 percent and T. bilsild is 11 percent, what must be the beta oda tock that investors expect to return 12 percent? if the expected rate of return on the market porfolio is 36 percent and T. bills yield is 11 percent, what must be the beta of a stock that investors expect to retum 19 percent? d! Why and part above given different expected rate of return, Jutify you awewthreason el You have equal investment in all four stocks given in part of this question. What would be your portfolo beta? Suppose you have investment as follows Coco CGroup Merek Walt Di 20 Calculate your portfolio beta Why beta is changing compare your answer with part above and justify reason of change in BETA
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