Question
Assume that Telsa has a beta of 0.2703, the market has an expected return of 7.7567, and the prevailing interest rates are 2.8795, and an
Assume that Telsa has a beta of 0.2703, the market has an expected return of 7.7567, and the prevailing interest rates are 2.8795, and an alpha of 2.5689. What is the expected return for Tesla. Hint use CAPM with alpha. (Use SP500 market index and 10 year treasury bonds for interest rates).
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Financial Markets And Institutions
Authors: Frederic S. Mishkin
2nd Edition
0321014650, 9780321014658
