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1. MSFT has a beta 1.56. Assume that the expected return of the market is 0.11 and the current relevant Treasury rate is 0.03. What

1. MSFT has a beta 1.56. Assume that the expected return of the market is 0.11 and the current relevant Treasury rate is 0.03. What is the expected that investors will demand from this stock?

2. You have the following information:

t1 t2 t3 t4

TSLA Returns 0.02 -0.02 -0.01 -0.05

Market Returns -0.03 -0.01 -0.05 0.06

What is the Covariance of TSLA and the market.?

3. You have the following information:

t1 t2 t3 t4
TSLA Returns 0.02 0.06 -0.03 -0.04
Market Returns -0.01 -0.01 0.08 0.07

What is the variance of the market?

4. You have the following information:

t1 t2 t3 t4
TSLA Returns 0.03 -0.06 -0.03 -0.03
Market Returns 0.02 -0.06 0.07 -0.06

What is the Beta of the TSLA?

5. WMT just paid a dividend of $3 per share. Analysts expect future dividends to grow at 21% per year for the next four years and then grow 5% per year thereafter. Calculate the expected dividend in year 5.

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