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NEED CORRECT SOLUTION IN 10 MINS OR GET MULTIPLE DISLIKES Mr. Ram is holding the following securities: Particulars of Securities Cost ) Dividends Market Price
NEED CORRECT SOLUTION IN 10 MINS OR GET MULTIPLE DISLIKES
Mr. Ram is holding the following securities: Particulars of Securities Cost ) Dividends Market Price Beta Equity Shares: Gold Ltd. 0.6 Silver Ltd. 11,000 16,000 12,000 40,000 1,800 1,000 800 0.8 12,000 17,200 18,000 37,500 Bronze Ltd. 0.6 GOI Bonds 4,000 1.0 Calculate: i. Expected rate of return in each case, using the Capital Asset Pricing Model (CAPM). ii. Average rate of return, if risk free rate of return is 14%
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