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Estimate the stock return by using APT Model. The particulars are as follows; the expected return of the market is 11 per cent and the
Estimate the stock return by using APT Model. The particulars are as follows; the expected return of the market is 11 per cent and the risk-free rate of interest is 6 per cent.
Factors | Market Price of Risk | Sensitivity Index |
Inflation | 9% | 1.1 |
Foreign Direct Investment | 5% | 0.8 |
Forex Rate | 4% | 1.0 |
GDP | 5% | 0.6 |
a) 7%
b) 10 %
c) 8.55%
d) None of them
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