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Download 5-year monthly prices of stock Facebook, Inc. (FB) and S&P 500 (^GSPC) (1) Estimate Beta for FB based up your sample data with the

Download 5-year monthly prices of stock Facebook, Inc. (FB) and S&P 500 (^GSPC)

(1) Estimate Beta for FB based up your sample data with the regression analysis tool from Excel. Is it statistically significant at 95% confidence level?

(2) Plot the characteristic line for FB with proper titles and labels.

(3) What is the adjusted beta for FB, according to Merrill Lynch method Eq.

(4)Given that current T bill rate is 2.50% and the expected market return is 12%, what is the required rate of return for FB based on the sample beta as in (1) and the adjusted beta you calculated in (3)?

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