Question: 010. Let's estimate the required return for TSLA Here are the historic returns for various asset classes CompoundingN I/YR PV PMT FV Small Stocks 1
010. Let's estimate the required return for TSLA Here are the historic returns for various asset classes CompoundingN I/YR PV PMT FV Small Stocks 1 orange PMT 89 12.17 $1.00 0.00 $27.419.32 Large Stocks (S&P500) the "Market 89 10.12 $1.00 0.00 $5,316.85 LT Govt Bonds 89 5.67 $1.00 0.00 $135.18 T-Bills *Riskfree 89 3.47 $1.00 0.00 $20.58 Inflation 89 2.93 $1.00 0.00 $13.10 Une thin equation to estimate the required rotum for TSLA; that is, Ra. RsRf-beta"(Rm-Rh RsRequired return of the stock Plisk-free rate Rm. Return on the Market
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
