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QUESTION

The share prices of Brothers Co Ltd and the relevant market index are given in the table below.Time Price of Share Market IndexEnd of Quarter 1 13.67...

The share prices of Brothers Co Ltd and the relevant market index are given in the table below.Time Price of Share Market IndexEnd of Quarter 1 13.67 982.0End of Quarter 2 15.50 990.0End of Quarter 3 13.55 978.0End of Quarter 4 14.85 988.0Required:a) Determine the beta for the company’s share. Assuming a risk-free rate of 5.5% applies.(10 marks)b) What information does the beta for the company’s shares calculated in Part (a)indicate? What would a negative beta mean for the company?(5 marks)

% changepriceIndex Time Price of Share Market IndexEnd of Quarter 1 13.67End of Quarter 2 15.5End of Quarter 3 13.55End of Quarter 4 14.85 a 982990978988Beta 13.39%-12.58%9.59% 0.81%...
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