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Help Mark evaluate his risk return on the following stocks. Option 1) Treasury yield is 4.50% and the S&P's expected return is 8.75%. So what

Help Mark evaluate his risk return on the following stocks.

Option 1) Treasury yield is 4.50% and the S&P's expected return is 8.75%. So what is the fair price for Amazon's stock? It is expected to pay a dividend of $22.50 this year, to decrease the dividends by 5.20%, and has a beta of 0.80.

Option 2) What is the yield to maturity for a 7.50% bond that matures in 5 years with a quoted price of 94.50?

Option 3) Suppose Affirm has a beta of 3.64 and has a target stock price of $206.00 in one year and to pay a dividend of $9.75 at that time. How much is the stock worth today if the expected return for the stock market is 8.75% and treasuries yield 3.25%?

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