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. . Instructions. Before you begin, you will need the Beta for: Your company and United Rentals, Inc. (URI) For the nominal risk free rate

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. . Instructions. Before you begin, you will need the Beta for: Your company and United Rentals, Inc. (URI) For the nominal risk free rate use a value of 3% Use the Beta you reported in "Getting to Know Your Company extra credit. If you did not participate in this extra credit, go to Yahoo, search for your company and look for the beta reported in the Summary tab. . Your Name: Item Your Response Your company's name eBay, Inc Beta for your company 113 Less risky than the just as risky as the Riskier than the average stock average stock average stock Based on your company's beta, what is your assessment of your company's risk relative to the average stock? (Highlight, circle or cross out your choice) Calculate the required rate of return for your company if the nominal risk-free rate (r) is 2% and the market risk premium (RP) is 5.5% Show your work Beta for United Rentals if you invested 60% of your money in United Rentals and 40% of your money in your company, what would your portfolio Beta be? Show your work 197 Calculate the required rate of return for your portfolio, if the nominal risk free rate (r) is 2% and the market risk premium (RP) is 5.5% Show your work Discuss your results based on the concept of risk and return discussed in class

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