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Calculate the average continuous monthly returns for the following dividend adjusted share price and market index. Date Share Price (Ri) August-20 $2.75 September-20 $2.90 October-20
Calculate the average continuous monthly returns for the following dividend adjusted share price and market index. Date Share Price (Ri) August-20 $2.75 September-20 $2.90 October-20 $2.95 November-20 $3.25 Market Index (Rm) 1,285.00 1,290.00 1,340.00 1,360.00 (a) (b) Has this share under or over performed relative to the market? Suppose the share's beta is 1.5 (B = 1.5) and the annual risk-free rate is 0.03. If you accept that past performance gives you the best guide to future returns, would you invest in this share? Briefly explain your decision
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