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2. 3. Following are the potential stock returns of the share of ABC Ltd in 2018. Calculate the expected return. Return Prob. (%) 20% 4

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Following are the potential stock returns of the share of ABC Ltd in 2018. Calculate the expected return. Return Prob. (%) 20% 4 20% 8 ?% 18 20% -4 Hint: if your answer is 20.25%, input 20.25. No marks will be given if inputting 0.2025 or 20.25% or 20.25 per cent. Your Answer: Answer Given correlation coefficient between returns on stock A and market returns is 0.0; standard deviation of returns on stock A is 20% and standard deviation of market returns is 9%. What is the beta value of stock A? Your Answer: Answer View hint for Question 7 Calculate the standard deviation of returns on ABC Ltd., using the below data between 2014 and 2016. Return Year (%) 2014 2015 5 2016 24 Hint: if your answer is 8.91%, input 8.91. No marks will be given if inputting 0.0891 or 8.91% or 8.91 per cent. Your

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