Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Following are the closing prices of an ETF that follows NIFTY IT for the last 21 active (daily) sessions (in Rs.): 308.74, 308.8, 312.17, 309.45,
Following are the closing prices of an ETF that follows NIFTY IT for the last 21 active (daily) sessions (in Rs.):
308.74, 308.8, 312.17, 309.45, 309.41, 305.25, 298.98, 298.1, 296.17, 297.03, 285.75, 293.52, 288.9, 287.6, 287.8, 286.5, 288.1, 290.7, 297.3, 302.7, 301.1
Considering the above to be the market values, compute the market returns. Taking risk-free annual interest rate to be 5.65%, fit two separate CAPM models for Infosys and TCS returns. Discuss your interpretation of the values.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started