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Question 7: The expected rate of return and the possibilities of their occurrence for Alpha company and Beta company scrips are given below: Probability of
Question 7: The expected rate of return and the possibilities of their occurrence for Alpha company and Beta company scrips are given below: Probability of Return on Alpha's Scrip Return on Beta's Scrip occurrence 0.05 -2.0 -3.0 10.20 9.0 6.0 10.50 12.0 11.0 10.20 15.0 14.0 10.05 26.0 19.0 (a) Find out the expected rates of return for Alpha and Beta scrips. (b) If an investor invests equally in both the scrips what would be the return? (c) If the proportion is changed to 25% and 75% and then to 7596 and 25%, what would be the expected rates of return
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