Answer to Question #263369 in Finance for Prachi

Question

Calculate the return as per CAPM for following company's stock,Returns of T- Bill is 7%.

Stock ,Expected Return ,Beta

Tata 21% 1.7

Adani Power 16% 1.4

Ranbaxy 23% 1.1

PNB 19% 1.2

Sensex 18%

Answer 1

Priority will be Ranbaxi 23% 1.1, then Tata 21% 1.7, then PNB 19% 1.2 and the least priority will be Adani Power 16% 1.4