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You are given the following data: Name of the Company Expected Beta Expected return in percent A 0.95 12 B 0.80 15 C 0.65 13.50

You are given the following data:

Name of the Company

Expected Beta

Expected return in percent

A

0.95

12

B

0.80

15

C

0.65

13.50

D

0.64

10

E

0.90

12.5

F

0.60

16.5

G

1.25

18

Expected return of the market - 14%; Risk free rate of return - 5%

With the help of above given information find the stocks which you would recommend to buy or sell? Which technique would you employ to calculate the same? List down the other applications if any?

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