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Kindly solve these questions for me. Thanks Apex Footwear Ltd. Brac Bank Ltd. Year 2020 2019 2018 2017 2016 2015 Stock Price Tk. 31.250 33.550
Kindly solve these questions for me. Thanks
Apex Footwear Ltd. Brac Bank Ltd. Year 2020 2019 2018 2017 2016 2015 Stock Price Tk. 31.250 33.550 31.400 32.350 31.375 34.625 Dividend Tk. 1.600 2.500 1.540 1.750 2.766 1.600 Stock Price Tk. 55.750 54.300 51.750 54.000 52.500 53.750 Dividend Tk. 2.500 2.500 4.550 3.650 2.300 1.600 Market Index Includes Divs. 9,650.98 7,584.70 8,192.98 6,244.03 4,524.28 5,447.00 e. Estimate Apex Footwear's and Brac Bank's betas by running regressions of their returns against the Market Index's returns. Are these betas consistent with your graph? f. The risk-free rate on long-term Treasury bonds is 6.04%. Assume that the market risk premium is 7%. What is the expected return on the market? Now use the SML equation to calculate the two companies required returns g. If you formed a portfolio that consisted of 42% Apex Footwear and 58% Brac Bank, what would be its beta and its required return? h. Suppose an investor wants to include Apex Footwear's stock in his or her portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfolio's required return if it consists of 25 percent of Apex Footwear, 15 percent of Stock A, 40 percent of Stock B, and 20 percent of Stock C Step by Step Solution
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