Mr. Fahim is estimating Beta for BSCCL using last monthly data for last 5 years. The regression results show that Beta of BSCCL is currently 1.2. He also finds the following information from his...

Mr. Fahim is estimating Beta for BSCCL using last monthly data for last 5 years. The regression results show that beta of BSCCL is currently 1.2. He also finds the following information form his dataset.

Extracted text: Mr. Fahim is estimating Beta for BSCCL using last monthly data for last 5 years. The regression results show that Beta of BSCCL is currently 1.2. He also finds the following information from his dataset. • Yearly average return of BSCCL is 7%. The correlation between BSCCL and DSEX is 0.44. • DSEX index return is 15% • Standard deviation of DSEX return is 20% • I-year Treasury bill rate is 6% Required: 1. Using the adjusted beta approach, calculate the expected return of BSCCL 2. Calculate the total risk of BSCCL 3. Decompose the total risk of BSCCL between systematic and non-systematic risk.