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View Full Version : GDB solution of mgt201 for idea fall 2010 and 4/1/2011



Xpert
01-04-2011, 12:13 PM
Given a risk-free rate of 8 percent and a market risk premium of 9.5 percent, based on the betas given in the following table:
Security Beta
A 0.95
B 1.25
1. Calculate required rate of return of each stock?
2. If Ahmed is a risk lover investor, he will prefer to invest in which stock?
3. As against it, Shahzad is a risk averse investor; he will prefer to invest in which stock?

3. As against it, Shahzad is a risk averse investor; he will prefer to invest in which stock?

find the solution in the attachment