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8. You are provided data on the three companies listed in Alternative Investments Market in the UK. Assume the risk free rate and market
8. You are provided data on the three companies listed in Alternative Investments Market in the UK. Assume the risk free rate and market index return is 2% and 6% respectively. A. Use the Capital Asset Pricing Model (CAPM) to calculate the required rate of returns on the companies. (6p) B. Assuming that the three stocks are equally weighted in your portfolio, calculate the beta of portfolio. (3p) Stock Beta Castle plc 0,5 Kings plc 2,0 The Bell plc 1,1
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Foundations Of Finance
Authors: Arthur J. Keown, John D. Martin, J. William Petty
9th Global Edition
1292155132, 9781292155135
