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If you were to deposit $12,000 today in a 1-year term deposit account earning 6% p.a. compounded annually, approximately how much will be your real

  1. If you were to deposit $12,000 today in a 1-year term deposit account earning 6% p.a. compounded annually, approximately how much will be your real gain at maturity if the inflation rate in the same year is 0.5%?
  2. ABC Ltd. and XYZ Ltd. shares have betas of 0.8 and 1.2 respectively. Government bills currently yields at 4% and the market risk premium is 6%. What is the expected return on XYZ Ltd. shares?

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