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Need help in each of the question in detail steps? Question 3 (25 pts) Expected Return: You want to find the expected return for Tesla

Need help in each of the question in detail steps?

Question 3 (25 pts) Expected Return: You want to find the expected return for Tesla Inc. using the CAPM. First, you need the market risk premium. Use the Canada 3-month Treasury Bill Yield of 4.99%. as a proxy for the risk- free rate (remember, T-Bills are a very short term government bonds). Use the average common stock return in Table 12.3 in your book (page 442) to calculate the market risk premium. Next, on the www.finance.yahoo.com site enter the ticker symbol TSLA for Tesla, and find the beta for this firm. What is the expected return for Tesla Inc., using CAPM? What assumptions have you made to arrive at this number?

Question 4 (25 pts). A $2,000 portfolio is invested in three stocks and one risk-free asset. Five hundred dollars is invested in stock A which has a beta of 1.3. Six hundred dollars is invested in Stock B which has a beta of .80. The rest of the portfolio is divided evenly between stock C and the risk-free asset. What is the beta of stock C if the portfolio is equally as risky as the market?

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