Question: please answer asap !! Syarikat Pan Dai Berhad has a beta of 0.90 , while Syarikat Ra Jin Berhad has a beta of 1.8 .
please answer asap !!
Syarikat Pan Dai Berhad has a beta of 0.90 , while Syarikat Ra Jin Berhad has a beta of 1.8 . The risk-free rate is 6% and the market expected rate of return is 14%. From the information given, you are required to answer the following questions. a. Determine the expected rate of return of Syarikat Pan Dai Berhad. (3 Marks) b. Determine the expected rate of return of Syarikat Ra Jin Berhad. (3 Marks) c. Based on your answer in part (a) and (b), you will find out that Syarikat Ra Jin Berhad's expected rate of return is NOT twice as Syarikat Pan Dai Berhad's expected rate of return. Explain. (4 Marks) (Total: 10 Marks)
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