Question: Calculate the CAPM expected return for Andante Ltd using the information below. All information is forward-looking and stated in annual terms. The risk free rate

 Calculate the CAPM expected return for Andante Ltd using the information

Calculate the CAPM expected return for Andante Ltd using the information below. All information is forward-looking and stated in annual terms. The risk free rate is 4%. State Very poor Poor Moderate Good Excellent Probability 0.2 0.2 0.2 0.2 0.2 Excess returns Excess returns Andante Ltd Market -0.30 -0.15 -0.10 0.00 0.10 0.05 0.20 0.12 0.40 0.25 OO

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