Question: QUESTION 1 Calculate the average continuous monthly returns for the following dividend adjusted share price and market index. DateShare Price (Ri)Market Index (Rm) August-20$2.75 1,285.00

QUESTION 1

Calculate the average continuous monthly returns for the following dividend adjusted share price and market index.

DateShare Price (Ri)Market Index (Rm)

August-20$2.75 1,285.00

September-20$2.90 1,290.00

October-20$2.95 1,340.00

November-20$3.25 1,360.00

(a)Has this share under or over performed relative to the market?

(b)Suppose the share's beta is 1.5 (b = 1.5) and the annual risk-free rate is 0.03. If you accept that past performance gives you the best guide to future returns, would you invest in this share? Briefly explain your decision.

Please use EXCEL to solve the above question and provide excel screenshots for explanation

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