Question: Sino Tech PLC's equity share beta is 1.5. One year before, this equity share has traded for $6.88. The current price of the share is

Sino Tech PLC's equity share beta is 1.5. One year before, this equity share has traded for $6.88. The current price of the share is $7.54. During this period, the company hasn't paid dividend on this share. In the same period, investors in the market expect a 6% risk premium over the return in the market portfolio. The Risk Free Interest Rate is 4%. You are required to a. Estimate the investors' required return using CAPM b. Calculate the actual (realised) return for the period c. Do you think that Sino Tech PLC was able to satisfy the investors' expectation? Explai

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