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4 . The following data has been provided in respect of asset A , B , C and market. The average return on long term

4. The following data has been provided in respect of asset A, B, C and market. The average return on long term government securities has been estimated at 8%.
Return Distribution (%
)
State of Nature ( Si) Probability ( Pi) Return on NSE index A B C
10.25101265
20.1510666
30.3126126
40.11241212
50.2821412
Required
Based on the data provided;
(i) Estimate the beta for asset A, B and C
(ii) Estimate the required rate of return for each asset using CAPM assuming that the average return on government securities ( Risk free rate of return) is 8%

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