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Less than half of the time remains. Question Completion Status: 5 6 7 8 10 11 12 13 14 150 16 17 18 19 A Moving to another question will save this response. Question 6 of 19 Question 6 12 points Save Awe Consider the following information regarding share A and B Share Beta Current price 25 Expected price in one year 27 Expected dividend 0.5 0.5 40 0.5 11 42 Required: Fill in missing information Do not include symbols: R: S: %; t(tonnes); l (litres): m (millions) etc. However, if the answer is negative please include the negative sign e.g. -2 Decimals should be written as 6.25 not 6,25 Carry 2dp for all workings and final answer. If the risk-free rate is equal to 6%, and the market risk premium is 696, the estimated returns for share A and B are 9 96 and 12 59 respectively The required rate of return for shares A and B respectively are 75 % and 12 %. The alpha of share A is -1 % therefore share A is The alpha of share Bis % therefore share B is Moving to another question will save this response Question 6 of 19 a ? ENG 139 PM US2021/06/03 5

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