Question: You have the following information about the returns for the shares of Super Lux plc and the returns for the market: Given that the rate

You have the following information about the returns for the shares of Super Lux plc and the returns for the market:

Given that the rate of return on Treasury bills is 8 per cent and that the correlation coefficient between the returns on Super Lux's shares and the market is +0.83, calculate the required rate of return on Super Lux's shares using the CAPM.

Return of the market (%) Return of Super Lux (96) 18 21 20 25 26 Time 10 8 12 14

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