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8-10 please. Calculations (10 questions, 10 points each) Formatting guidelines: Input prices to two decimal places (i.e. $XX.XX) Input a negative result as a negative

8-10 please.

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Calculations (10 questions, 10 points each) Formatting guidelines: Input prices to two decimal places (i.e. $XX.XX) Input a negative result as a negative (i.e. a loss of $15.00 is input -15.00) All %'s (such as annual % return) to two decimal places (.e. xx.xx%) Your portfolio consists of the following three holdings (this information is used for almost all questions): a) Tesla (TSLA) 1,000 shares worth $260 per share, TSLA Beta is 0.60 b) Amazon (AMZN) 250 shares worth $1,700 per share, AMZN Beta is 1.55 c) Facebook (FB) 500 shares worth $180 per share, FB Beta is 1.10 Note that none of these stocks pay dividends. The risk-free rate (Rf) has a yield of 2.00% and the expected equity market return (Rm) is 8.00% 8 Using the Beta of AMZN, what is the Required (or Minimum) Return on AMZN (answer to two decimal places)? 9 You are evaluating your holdings in TSLA. You computed the Required Return for TSLA in Q7. Equity analysts expect the stock to be up 10% on the year. Based on the analysts' forecast, does TSLA seem like a good return for the risk? In other words, is the stock expected to be up more than the Required Return? TRUE = good investment FALSE = bad investment. 10 You are evaluating your holdings in AMZN. You computed the Required Return for AMZN in 28. Equity analysts expect the stock to be up 10% on the year. Based on the analysts' forecast, does AMZN seem like a good return for the risk? In other words, is the stock expected to be up more than the Required Return? TRUE = good investment FALSE = bad investment

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