Following information is given from the books of Al Hamid Investment Services. The expected market return is to be 6 per cent and the risk free rate of retun to be 4 per cent. The Beta value of the five companies are as follows: Oman Cement is 0.90, National Bank of Oman 0.80, AI Jazeera Steel is 1.40 and Oreedo Oman is 0.6 Find the required rate of return as per Capital Asset Pricing Model (CAPM) for Oreedo Oman: 0.0520 0.0680 0.0052 0.0600 Find the required rate of return as per Capital Asset Pricing Model (CAPM) for Oman Cement 0.068 0.058 0.052 0.056 Find the required rate of retum as per Capital Asset Pricing Model (CAPM) for National Bank of Oman Oman: 0.048 None of these 0.065 0.052 Find the required rate of return as per Capital Asset Pricing Model (CAPM) for Al Jazeera Steel None of these 0.068 0.086 0.056
Following information is given from the books of Al Hamid Investment Services. The expected market return is to be 6 per cent and the risk free rate of retun to be 4 per cent. The Beta value of the five companies are as follows: Oman Cement is 0.90, National Bank of Oman 0.80, AI Jazeera Steel is 1.40 and Oreedo Oman is 0.6 Find the required rate of return as per Capital Asset Pricing Model (CAPM) for Oreedo Oman: 0.0520 0.0680 0.0052 0.0600 Find the required rate of return as per Capital Asset Pricing Model (CAPM) for Oman Cement 0.068 0.058 0.052 0.056 Find the required rate of retum as per Capital Asset Pricing Model (CAPM) for National Bank of Oman Oman: 0.048 None of these 0.065 0.052 Find the required rate of return as per Capital Asset Pricing Model (CAPM) for Al Jazeera Steel None of these 0.068 0.086 0.056
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 7P
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