lucid motors

Pick one stock. Use its beta to compute its "expected return" assuming CAPM. For CAPM, use the risk-free return (Rf) of 4% and the marke return (Rm) of 15.82%. The risk-free rate is the 3 -month T-Bill rate. The market return is based on the latest S\&P 500 Index value of 3,883 in Nov. 2022 and the value of 4,613 a year ago, so market return =3,883/4,6131=15.82% (a negative market return for the past year). Then, generate the stock's historical stock prices and compute its latest "actual annual return" (based on adj). close price). Historical stock prices can be generated from Yahoo Finance, under Historical Data Compare its "actual annual return" to the "expected return" to see if the stock is on, above, or below the Security Market line (SML). \begin{tabular}{lrlr} \hline \multicolumn{1}{l}{ Previous Close } & 11.26 & Market Cap & 17.418B \\ \hline Open & 11.11 & Beta (5Y Monthly) & 0.62 \\ \hline Bid & 10.374000 & PE Ratio (TTM) & 9.97 \\ \hline Ask & 10.384000 & EPS (TTM) & 1.04 \\ \hline Day's Range & 10.2511.11 & Earnings Date & Nov 08, 2022 \\ \hline 52 Week Range & 10.2557.44 & Forward Dividend \& Yield & N/A (N/A) \\ \hline Volume & 23,863,737 & Ex-Dividend Date & N/A \\ \hline Avg. Volume & 18,795,157 & 1y Target Est & 20.87 \end{tabular}