Question: Q2 a. ZF Ltd. has a security [3 1.4, expected market return is 16%, risk free rate is 9%, Company's anticipated dividend for the year

Q2 a. ZF Ltd. has a security [3 1.4, expected market return is 16%, risk free rate is 9%, Company's anticipated dividend for the year is R318, Current market price is R5450, and price is expected to reach at R3520 by the end of year. Calculate expected returns & estimated returns of security and explain valuation of stock. b. Explain Interest Rate Risk & Purchasing Power Risk

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