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Section C (4 Mark)As an investor you have a required rate of return of 14...

Section C (4 Mark)

As an investor you have a required rate of return of 14 percent for investments in risky stocks. You have to analyze three risky firms and must decide which (if any) to purchase. Your information is

What is the maximum price? Which (if any) should buy?

A.

Rs. 23/-, Rs. 47/-, Rs.70/- , Share- C

B.

Rs. 15.29, Rs. 43.71, Rs. 63.64, No buy

C.

Rs. 15.29, Rs. 22.50, Rs. 49.50, Share B and C

D.

Rs. 16.36, Rs. 49.67, Rs. 69.75, Share B only

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