Question: Given the following information, calculate the expected return for Tesla using the Capital Asset Pricing Model. The return on a 10 year Treasury is 2.5.
Given the following information, calculate the expected return for Tesla using the Capital Asset Pricing Model.
The return on a 10 year Treasury is 2.5.
The retun on the Russell 5000 that will be used as a proxy for the market return is 8.6.
The beta for Tesla is 2.2.
The revenue for Tesla is $50 million.
Post your answer as a % to 1 decimal place. For example 10.7
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