(a) The following table provides information about two NZX listed companies, A Ltd and B Ltd, with some missing entries: A Ltd 0.095 B Ltd 0.065 Actual return in share price for the current year Expected return in share price for the current year Abnormal return in share price for the current year Market model equation 0.00645 E(R) = 0.033 + 1.010 x Rm ? Two analysts provide the following market model equations for B Ltd, respectively: Analyst X: Analyst Y: E(R) = 0.025 + 1.110 x Rm E(R) = 0.042 + 0.098 x Rm Where: E(R) is the expected return in share price for the company for the current year; and Rm is the market return in share price for the current year. REQUIRED: (0) Calculate the expected return in share price for A Ltd for the current year. Show your workings. (ii) Using the market models provided by Analyst X and Y, calculate the expected return in share price for B Ltd for the current year respectively. Show your workings. (iii) Using the market models provided by Analyst X and Y, calculate the abnormal return in share price for B Ltd for the current year respectively. Show your workings. (iv) If forecast errors in EPS for the current year for B Ltd is $0.05, based on your calculations above and referring to the information theory, briefly explain which analyst's market model equation you agree with. (Maximum words: 100) (Total for Question 1(a): 7 marks)