What would be impact if the market indec increase

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Reference no: EM132651699

The following information is about Drishti Fashion Ltd.

  • Risk free rate of return is 5%
  • Beta Co efficient of the firm is 1.25.

Question (i) Compute the required rate of return using Capital Asset Pricing Model (CAPM) assuming returns on market portfolio to be 15%.

Question (ii) What would be the required return if beta rises to 1.75?

Question (iii) Can the Beat of a stock be negative? If the Beat of the stock of Drishti Fashions is Zero what would be its impact if the market indec increase by 0.5%

Reference no: EM132651699

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