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Tesla has a beta of 1.25. The expected return on the market is 13% and the risk-free rate is 2.5%. Using the CAPM, what is

Tesla has a beta of 1.25. The expected return on the market is 13% and the risk-free rate is 2.5%.

Using the CAPM, what is the expected return on Tesla?

After careful independent analysis, you believe that Tesla will in fact return 24% over the next year. What is the reward-ro-risk ratio for Tesla?

What is the reward-to-risk ratio for the SML?

Is Tesla over or under valued?

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