Question: A B D E Date WN un 000 1 2 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17


A B D E Date WN un 000 1 2 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 amazon price S/1/16 722.789978 6/1/16 715.619995 7/1/16 758.809998 8/1/16 769.159973 9/1/16 837.309998 10/1/16 789.820007 11/1/16 750.570007 12/1/16 749.869995 1/1/17 823.47998 2/1/17 845.039978 3/1/17 886.539978 4/1/17 924.98999 5/1/17 994.619995 6/1/17 968 7/1/17 987.780029 8/1/17 980.599976 9/1/17 961.349976 10/1/17 1105.280029 11/1/17 1176.75 12/1/17 1169.469971 1/1/18 1450.890015 2/1/18 1512.449951 3/1/18 1447.339966 4/1/18 1566.130005 5/1/18 1629.619995 6/1/18 1699.800049 7/1/18 1777.439941 8/1/18 2012.709961 9/1/18 2003 10/1/18 1598.01001 11/1/18 1690.170044 12/1/18 1501.969971 1/1/19 1718.72998 2/1/19 1639.829956 3/1/19 1780.75 4/1/19 1926.52002 5/1/19 1775.069946 6/1/19 1893.630005 nasdaq dosing price 4948.049805 4842.669922 5162.129883 5213.220215 5312 5189.140137 5323.680176 5383.120117 5614.790039 5825.439941 5911.740234 6047.609863 6198.52002 6140.419922 6348.120117 6428.660156 6495.959961 6727.669922 6873.970215 6903.390137 7411.47998 7273.009766 7063.450195 7066 27002 7442.120117 7510.299805 7671.790039 8109.540039 8046.350098 7305.899902 7330.540039 6635.279785 7281.740234 7532.529785 7729.319824 8095.390137 7453.149902 8006,240234 26 29SMANNSMMMMMmmm 27 28 30 31 32 33 34 35 36 37 38 39 D E E WN 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 B uit ZILETUJU 9/1/18 2003 10/1/18 1598.01001 11/1/18 1690.170044 12/1/18 1501.969971 1/1/19 1718.72998 2/1/19 1639.829956 3/1/19 1780.75 4/1/19 1926.52002 5/1/19 1775.069946 6/1/19 1893.630005 7/1/19 1866.780029 8/1/19 1776.290039 9/1/19 1735.910034 10/1/19 1776.660034 11/1/19 1800.800049 12/1/19 1847.839966 1/1/20 2008.719971 2/1/20 1883.75 3/1/20 1949.719971 4/1/20 2474 5/1/20 2442.370117 6/1/20 2758.820068 7/1/20 3164.679932 8/1/20 3450.959961 9/1/20 3148.72998 10/1/20 3036.149902 11/1/20 3168.040039 12/1/20 3256.929932 1/1/21 3206.199951 2/1/21 3092.929932 3/1/21 3094.080078 4/1/21 3279.389893 No no C BIUSTUS 8046.350098 7305.899902 7330.540039 6635.279785 7281.740234 7532.529785 7729.319824 8095.390137 7453.149902 8006.240234 8175.419922 7962.879883 7999.339844 8292.360352 8665.469727 8972.599609 9150.94043 8567.370117 7700.100098 8889.549805 9489.870117 10058.76953 10745.26953 11775.45996 11167.50977 10911.58984 12198.74023 12888.28027 13070.69043 13192.34961 13246.87012 13698.37988 45 46 op o ORN un in un un aw 47 48 49 SO 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 SO98U (1) Find the monthly return of Amazon and Nasdaq. (2) Run a liner regression to estimate beta of Amazon. (3) Use Corrl (Amazon return, Nasdaq return) > STDEV(Standard deviation of Amazon return)/STDEV (standard deviation of Nasdaq return) to find beta of Amazon. (4) Use the security market line or capital asset pricing model to find the required rate of return of Amazon, assuming market return is 12% and risk free rate is 3%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
