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Question 2 Mr. Moremi who works as an Analyst at Capital Securities, have been monitoring the performance of stocks of Barclays, Sechaba, and Cresta and

Question 2 Mr. Moremi who works as an Analyst at Capital Securities, have been monitoring the performance of stocks of Barclays, Sechaba, and Cresta and has compiled the following: Beta STD Forecast for December 2023 Dividend Stock Price Barclays 0.45 35% P0.50 P45 Sechaba 1.45 40% 0 P75 Cresta -0,20 40% P1.00 P20 a) The markets standard deviation is 18%. Using the risk-free rate of 2.0% and an expected market return of 9.5%, what is the expected return of each stock? [9 marks] Based on your calculations in (a) describe the relationship between a firms return and its beta. [2 marks

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