Finance: Compute beta using CAPM and give a risk free rate
Q2: In a small economy the market portfolio is comprised of the following three companies: Company Shares on Issue Price per share Expected Return A 200,000 $5.00 8% B 250,000 $4.00 12% C 500,000 $2.50 16% If the capital asset pricing model applies in this market and the risk-free rate is 6%, what is the beta of compan