The following are the annual returns for the ordinary shares of Court plc and for a representative equity price index (a) What is the beta for Court plcs ordinary shares (b) If the risk free rate is 6 per cent p a and the expected return for equities generally is 12 per cent p a , what would be the...

Court plc a Year 1 2 3 4 5 6 7 8 9 10 m 013 007 013 004 Tm Dm 060 010 006 ro Dia 00 ...

The following are the annual returns for the ordinary shares of Court plc and for a representative

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The following are the annual returns for the ordinary shares of Court plc and for a representative equity price index:

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(a) What is the beta for Court plc’s ordinary shares?

(b) If the risk-free rate is 6 per cent p.a. and the expected return for equities generally is 12 per cent p.a., what would be the expected return on Court plc’s ordinary shares?

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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Question Posted: Mar 05, 2024 06:38 AM

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The following are the annual returns for the ordinary shares of Court plc and for a representative

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Year 1234567 8 9 10 Court plc % 19 (8) (12) 3 8 17 14 14 14 1 Index % 13 (7) (13) 4 8 10 15 16 16 (2)

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