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Using the CAPM, a risk free rate of return of 2% pa and a market risk premium of 5% pa: a) What is the required

Using the CAPM, a risk free rate of return of 2% pa and a market risk premium of 5% pa:

a)What is the required return on shares in Gamma Limited when the beta coefficient of their shares is 1.2? Give your answer as a percentage per annum to the nearest percent.

Required return = % pa

b)What is the required return on shares in Zee Limited when the beta coefficient of their shares is 0.8? Give your answer as a percentage per annum to the nearest percent.

Required return = % pa

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