Based on five years of monthly data ending December

2017, you obtain the following information for the

companies listed on the ASX:

Co /Index Stan devi (%) Corr w mkt

ANZ Bank 21.1 0.74

BHP 26.8 0.50

Cshare Ltd 21.9 0.42

CSL Ltd 18.0 0.57

S&P/ASX 20011.6 1.00

a Calculate the beta coefficient for each share.

b Assuming a risk-free rate of 6 per cent and an

expected return for the market portfolio of 12 per cent,

calculate the expected (required) return for all the

shares and plot them on the SML.