Question: Note : round off only the final answer to 2 deciamal places. YouTube Map ply 10 Pins Question 10 of 13 The market (M) and

Note : round off only the final answer to 2 deciamal places.
YouTube Map ply 10 Pins Question 10 of 13 The market (M) and the share en have the following probability distributions: Share Return Market Return Probability 20% 16 03 6 12% 0.4 13 19% 03 Required: a) Determine the expected rate of return of the market. b) Determine the expected rate of return of share] 91 Determine the risk for the market d) Determine the risk for share ej Suppose the risk-free rate is 7.8% and sharehas a beta of 1.6. Determine the required return for share) by use of the CAPM. e 400 LMO i pe here to search
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
