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 plc’s ordinary shares?

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

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Year Court plc Index % % 1234 19 (8) (12) (7) (13) 3 4 5 8 8 6 17 10 7 14 15 8 14 16 9 14 16 10 1 (2)