1. Assume the required return on the following companies shares are as follows: (40 marks) Required Return Company Dr. Phil Corp 18% 22% Zareena AlWaad 15.5% BlueGlue 19.2% If the expected return on the market portfolio is 13% and the risk free rate of return is 2%, answer the following: a) Which company has higher sensitivity of return on its share in response to 1% change in return on the market portfolio? b) Which share possesses a higher diversifiable risk? c) Which share possesses a higher non-diversifiable risk? d) Which share pays a higher risk premium