Calculate the return as per CAPM for each of the companys stock, identify whether they are underpriced,
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate the return as per CAPM for each of the company’s stock, identify whether they are underpriced, overpriced or correctly priced and advise accordingly. Returns of T- Bill is 9%.
Stock | Expected Return | Beta | |
Titan | 24% | 1.8 | |
Nestle | 30% | 1.5 | |
Eicher Motors | 12% | 1.2 | |
HDFC | 25.9% | 1.3 | |
Sensex | 22% | ||
| | | |
Related Book For
Statistics and Data Analysis for Financial Engineering
ISBN: 978-1461427490
1st edition
Authors: David Ruppert
Posted Date: