Question 6 Mr. TOM intends to invest in equity shares of a company the value of which depends upon various parameters as mentioned below : Factor Beta Expected value in % Actual value in % GNP 1.30 8.70 9.70 Inflation 1.85 6.50 5.50 Interest rate 1.40 7.70 6.00 Stock market index 1.75 9.00 11.00 Industrial production 1.00 6.50 4.50 If the risk free rate of interest be 9.50%, how much is the return of the share under Arbitrage Pricing Theory