Question 1. The following data has been provided in respect of asset A, B C and market. The average return on long term government securities has been estimated at 8%.

			Return Distribution (%)
State of nature (si)		Probability (pi)	Return on NSE index	A	B	C
1		0.25	10	12	6	5
2		0.15	10	6	6	6
3		0.3	12	6	12	6
4		0.2	12	4	12	12
5		0.1	8	2	4	12

Require:

Based on the data provided;

1. Estimate the beta for asset A, B and C
2. Estimate the required rate of return for each asset using CMPM