b) Mr. Jhon wants to buy the common stock of a Hydroelectric company. The risk-free rate of return is 8% on government bonds. The present market portfolio return is 15%. If the beta of systematic risk is 1.20, what is the cost of stock?

3.a) Hamelton Itd has following information of two investment project, Apex (A) and Bata (B). Probability .10 .20 .40 .20 .10 Distribution Cash flow of 13000 13500 14000 14500 15000 project A Cash flow of 12000 13000 14000 15000 16000 project B You are required to calculate i) Expected return ii) Standard Deviation iii) Co-efficient of variance. iv) Comments which one is risky and why