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6 points Consider the information given below and estimate monthly expected returns and the total risks for each Company A, Company B and the Market portfolio. 2. Year Returns on Company A Returns on Company B Returns on Market portfolio 1 4.20% 4.08% 1.07% 2.71% -2.73% 5.44% 3 4.15% 8.00% 3.74% 4 3.68% 1.60% 4.78% 5 4.85% 29.00% 3.00% 6 9.86% 3.00% 4.00% 7 -9.00% -34.00% -2.00% 8 -15.00% 35.00% -3.00% 9 1.00% -3.00% -2.00% 10 2.00% -4.00% 1.00% 11 5.00% 9.00% 2.00% 12 -3.00% -8.00% 3.00% None of 0.87% 3.16% 1.75% 6.82% 16.76% 2.69% the given Company B monthly returns based risk Company A monthly returns based risk Company B monthly 0.87% 3.16% 1.75% 6.82% 16.76% 2.69% None of the given Company B monthly returns based risk Company A monthly returns based risk Company B monthly returns Company A. monthly returns Market Portfolio monthly returns Market portfolio monthly returns based risk 6 points Consider the information given below and Estimate the CAPM Beta for Company A, B and the Market portfolio respectively. 5 Year Returns on Company A Returns on Company B Returns on Market portfolio 1 4.20% 4.08% 1.07% 2 2.71% -2.73% 5.44% 3 4.15% 8.00% 3.74% 4 3.68% 1.60% 4.78% 4.85% 29.00% 3.00% 6 9.86% 3.00% 4.00% 7 -9.00% -34.00% -2.00% 8 -15.00% 35.00% -3.00% 9 1.00% -3.00% -2.00% 10 2.00% -4.00% 1.00% 11 5.00% 9.00% 2.00% 12 -3.00% -8.00% 3.00% 12 1.83 0.21 1.00 .08 3.54 None of the given CAPM Beta for Market Portfolio CAPM Beta for company A CAPM Beta for company B

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