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On a certain market the risk free rate is 2,75%, the market portfolio risk is 28% and the market portfolio rate of return is 30%.
On a certain market the risk free rate is 2,75%, the market portfolio risk is 28% and the market portfolio rate of return is 30%. We also know that on this market ABC share is well priced. Its rate of return is 24,55%. a) Based on provided information try to calculate the of the ABC share. If it is not possible, please write what more data is needed. Is ABC aggressive or defensive type of share? b) If on this market exists XYZ share with expected rate of return equal to 35% and B equal to 1,15, decide what recommendation you would give to investors about investing in it
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