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Given the following closing share price data for Bata Shoe: Date Bata Sho 1-Jan-'11 Tk. 7.14 31-Jan-'11 8.00 1-Feb-'11 6.76 28-Feb-'11 6.07 (a) Compute the

Given the following closing share price data for Bata Shoe: Date Bata Sho 1-Jan-'11 Tk. 7.14 31-Jan-'11 8.00 1-Feb-'11 6.76 28-Feb-'11 6.07 (a) Compute the average rate of returns for Bata Shoe. If you want to invest in Bata Shoe's stock, what would be your expected annual rate of return? (b) If Bata's beta is 1.54 , Market Risk Premium is 12% and the risk-free rate is 4% per year, what would be an appropriate required rate of return for an investor owning Bata? Are you willing to invest in the stock of Bata shoe? Why or why not? Explain. Interpret Bata's Beta.

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