Question
1. The following data have been developed for the Rivatex Limited the manufacturer of an advanced line of adhesives. Market Return Return for the Firm
1. The following data have been developed for the Rivatex Limited the manufacturer of an advanced line of adhesives. Market Return Return for the Firm State Probability Rm Ri 1 .1 -15 -30 2 .3 5 0 3 .4 15 20 4 .2 20 50 The risk free rate is 6% calculate the following a. The expected market Return b. The variance of the market Return c. The expected return of Rivatex Limited d. The covariance of return of the Rivatex Limited with the market return e. Write the equation of the security market line f. What is the required return for Rivatex Limited using CAPM
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