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TABLE 1 (below) includes end of year price data on the NASDAQ, Tesla (TSLA) and JP Morgan (JPM) from years 2010 to 2020: TABLE 1:
TABLE 1 (below) includes end of year price data on the NASDAQ, Tesla (TSLA) and JP Morgan (JPM) from years 2010 to 2020: TABLE 1: (Source: https://au.finance.yahoo.com) NASDAQ Index Tesla, Inc. (TSLA) 5.37 NASDAQ Returns TSLA Returns Year JPM Returns JPMorgan Chase & Co. (JPM) 43.00 34.06 2010 2676.65 2011 2657.39 3091.33 5.79 7.00 2012 44.98 2013 37.20 58.31 29.96 2014 2015 62.18 63.95 44.57 4160.03 4760.24 4897.65 5425.62 6937.65 6506.91 2016 2017 2018 42.97 62.40 61.22 87.34 107.63 95.95 9039.46 139.79 2019 2020 84.90 719.46 12958.52 127.50 E(R) Risk 1. Complete Table 1 above by calculating the annual returns for the NASDAQ index, Tesla and JP Morgan in the first step and the expected return and risk in the second step. The completed table should be submitted with your assignment. Please show your steps for: (5 marks) a. the annual NASDAQ returns for 2019 b. the expected return for TSLA c. the risk for JPM 2. The Beta coefficients of TSLA and JPM are 1.99 and 1.18 respectively. What does Beta measure and how is it interpreted? Explain the beta values of TSLA and JPM by providing a calculated example of how they relate to market returns
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