Question: Question 1. The following data has been provided in respect of asset A, B C and market. The average return on long term government securities
Question 1. The following data has been provided in respect of asset A, B C and market. The average return on long term government securities has been estimated at 8%. Return Distribution (%) State of nature (si) Probability (pi) Return on NSE index A B C 1 0.25 10 12 6 5 2 0.15 10 6 6 6 3 0.3 12 6 12 6 4 0.2 12 4 12 12 5 0.1 8 2 4 12 Require: Based on the data provided; Estimate the beta for asset A, B and C Estimate the required rate of return for each asset using CAPM
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