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A company ABC Ltd has got returns of 12%, 15%, 11%, 6% and 9% respectively for first 5 years and corresponding market returns are 11%,
A company ABC Ltd has got returns of 12%, 15%, 11%, 6% and 9% respectively for first 5 years and corresponding market returns are 11%, 14%, 16%, 10%, 11%. Calculate the values of systematic and unsystematic risk. Calculate the value of alpha if the current rate of treasury bill is 7%. Also state whether the security is undervalued / overvalued ?
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