QUESTION A1| The table below summarise the returns on stock X and Y as well the market portfolio over the last 5 years. Year A (%) B (%) Market (%) 2020 11 7 2019 10 2018 3 6. 2017 6. 12 2016 14 8...

QUESTION A1|<br>The table below summarise the returns on stock X and Y as well the market<br>portfolio over the last 5 years.<br>Year<br>A (%)<br>B (%)<br>Market (%)<br>2020<br>11<br>7<br>2019<br>10<br>2018<br>3<br>6.<br>2017<br>6.<br>12<br>2016<br>14<br>8<br>Required:<br>a) Calculate the standard deviation and beta of stock A and B.<br>b) If the risk-free rate is 2%, estimate the expected returns of stock A and B<br>using the capital asset pricing model (CAPM).<br>

Extracted text: QUESTION A1| The table below summarise the returns on stock X and Y as well the market portfolio over the last 5 years. Year A (%) B (%) Market (%) 2020 11 7 2019 10 2018 3 6. 2017 6. 12 2016 14 8 Required: a) Calculate the standard deviation and beta of stock A and B. b) If the risk-free rate is 2%, estimate the expected returns of stock A and B using the capital asset pricing model (CAPM).

Jun 11, 2022

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QUESTION A1| The table below summarise the returns on stock X and Y as well the market portfolio over the last 5 years. Year A (%) B (%) Market (%) 2020 11 7 2019 10 2018 3 6. 2017 6. 12 2016 14 8...

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