:::|| VU Askari ||::: Anyone solve this question_MGT201

Suppose that the risk free rate is 12% and the expected market return is 20%. The

FM Corporation has a beta of 0.75 and the Gord Corporation has a beta of 1.25.

a. Find the expected return on the FM Corporation.

b. Find the expected return on the Gord Corporation.

c. Suppose that because of a suddenly unanticipated increase in inflation, the

risk free rate raises to 16% and the market risk premium remains at 8%.

Find the expected return on of FM and Gord.

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God bless
Marina khan

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