1. Suppose you have $1000 to invest and are using two stocks ( A and B ) to construct a market-rieutral portfolio. Based on your analysis, the weight for A=37.4 (attention, it is 37.4, not 37.48 ). - calculate the weight for B - What do those numbers (the two weights) mesn? 2. If based on the CAPM regression on Facebook during 20172018, we get the following regression equation y=0.005+1.26x - What is Facebook's alpha? What is its historical beta? What is Facebook's future beta? - What is your judgement about Facebook based on the performance in 2017-2018? is it a good investment. according to the criteria we mentioned in the class