1. The data below have been collected for ABC Sdn Bhd.

Year	Market Return	Company Return
2015	.27	.25
2016	.12	.05
2017	-.03	-.05
2018	.12	.15
2019	-.03	-.10
2020	.27	.30

The yield on government Treasury Bills is .066 and is not expected to change. Find:

a) The expected market return. [5 marks]

b) The variance of the market return. [5 marks]

c) The expected return of ABC Sdn Bhd. [5 marks]

d) The covariance of the return for ABC Sdn Bhd and the return on market. [5 marks]

e) Write the equation of the security market line. [5 marks]

f) What is the required return for ABC Sdn Bhd? [5 marks]

1. The data below have been collected for ABC Sdn Bhd.

Year	Market Return	Company Return
2015	.27	.25
2016	.12	.05
2017	-.03	-.05
2018	.12	.15
2019	-.03	-.10
2020	.27	.30

The yield on government Treasury Bills is .066 and is not expected to change. Find:

a) The expected market return. [5 marks]

b) The variance of the market return. [5 marks]

c) The expected return of ABC Sdn Bhd. [5 marks]

d) The covariance of the return for ABC Sdn Bhd and the return on market. [5 marks]

e) Write the equation of the security market line. [5 marks]

f) What is the required return for ABC Sdn Bhd? [5 marks]