Compute beta coefficient for each stock-company

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Based on five years monthly data, you derive the following information for the companies listed: 
Company s (standard deviation) rim (Correlation) Estimated Return (Er) 
Prime 12.10% 0.72 20% 
ACE 14.60% 0.33 15% 
NIC 7.60% 0.55 19% 
NEPSE (m) 5.50% 1  

i. Compute beta coefficient for each stock/company. (30) 
ii. Assuming a risk free rate is 8% and expected return for the market portfolio is 15%, compute required return for all the stocks (15) 
iii. Indicate which stocks are undervalued or overvalued based on your calculation of required rate of return above. (10) 

Reference no: EM131668861

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