NFLX has a beta of 1.05 and is currently selling for $79.50. If the T-bill is currently yielding 5.2% and the expected market return is 11%, does the NFLX required return based on CAPM and the expected return based on the possible states of the economy yield the same results? Explain briefly and also calculate the NFLX required return

 

Answer rating: 100% (QA)

The Capital Asset Pricing Model CAPM calculates the required return of a stock based on its beta the ... View the full answer