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Answer quick as possible 1. The following table shows the trend of KOSPI(Korea Stock Price Index) as a market index and the stock price of

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1. The following table shows the trend of KOSPI(Korea Stock Price Index) as a market index and the stock price of Samsung Electronic Co. at the end of each year from 2016 to 2020. The risk-free rate and the rate of return of KOSPI for 2021 are expected to be 1% and 5%, respectively. Please estimate the stock price of Samsung Electronic Co. at the end of 2021 using CAPM and interpret the estimated stock price of Samsung Electronic Co. with its beta(B). Trend of KOSPI and Samsung Electronic Co. stock price At the End of Year KOSPI 2016 2,026 2017 2,467 Stock price of Samsung Electronic Co.(KRW) 36,040 50,960 38,700 56,500 81,000 2018 2.041 2019 2,204 2020 2,873 (Tips for solving this problem) Calculating returns of KOSPI and Samsung Electronic Co. stock price for 2017, 2018, 2019 and 2020, respectively. Dividends are not considered in calculating the rate of return. Calculating the mean and standard deviation of KOSPI and Samsung Electronic Co. Calculating the covariance between returns of KOSPI and Samsung Electronic Co. - Calculating the beta() of Samsung Electronic Co

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