a)
To determine: The beta of MK Company.
Introduction:
Beta is an important indicator of the risk of a security. It measures the systematic risk of a risky investment by comparing the risky investment with the average risky asset in the market.
b)
To determine: The expected return as per the
Introduction:
Capital asset pricing model (CAPM) describes the relationship between the projected return for assets and systematic risk on the stocks. It is utilized to compute the required
Expected return refers to a return that the investors expect on a risky investment in the future.
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