4. An investor seek advice for investment in company XY and XZ, with the following information: ASX 200 return 8% p. a. and market risk premium is 5% p.a. a) Without calculation, use the meaning of beta to identify which company has a higher expected rate of return, explain briefly. b) Use CAPM, calculate E(R) of two companies. c) Calculate the implied price of share of each company and which share he should buy? Explain. d) Use the P/E ratio to identify the cheaper share. 4. An investor seek advice for investment in company XY and XZ, with the following information: ASX 200 return 8% p. a. and market risk premium is 5% p.a. a) Without calculation, use the meaning of beta to identify which company has a higher expected rate of return, explain briefly. b) Use CAPM, calculate E(R) of two companies. c) Calculate the implied price of share of each company and which share he should buy? Explain. d) Use the P/E ratio to identify the cheaper share