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Shares in Dango company have a beta of 0 . 9 . The expected returns to the market are 1 0 % and the risk

Shares in Dango company have a beta of 0.9. The expected returns to the market are 10%
and the risk free rate of return is 4%. What is the expected rate of return (or the cost of
equity) from Dango company?
Investors have an expected rate of return of 8% from ordinary shares in Alpha Ltd, whicl
have a beta of 1.2. The expected returns to the market are 7%.
What will be the expected rate of return from ordinary shares in Omega Ltd, which hav
a beta of 1.8?
If the risk free rate of return is 7% and the average market return is 11%;
(i) What will be the return expected from a share whose beta factor is 0.9?
(ii) What would be the share's expected value if it is expected to earn an annu:
dividend of 5.3c with no capital growth?
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