Question Four: Cost of Capital (10 Marks, 20 Minutes) North Bay Enterprises is calculating the MRP over the last five years for used in CAPM. They collected the following data: REQUIRED: 1. Calculate the MRP using arithmetic mean returns. 2. Calculate the MRP using geometric mean returns. 3. Which of these two methods for calculating the MRP is preferred? Explain. 4. How could the results in Part 2 be improved? Explain. Question Four: Cost of Capital (10 Marks, 20 Minutes) North Bay Enterprises is calculating the MRP over the last five years for used in CAPM. They collected the following data: REQUIRED: 1. Calculate the MRP using arithmetic mean returns. 2. Calculate the MRP using geometric mean returns. 3. Which of these two methods for calculating the MRP is preferred? Explain. 4. How could the results in Part 2 be improved? Explain