GOOG has beta of 1.1, NFLX has a beta of 1.3, and AVGO has beta of 0.9. The market risk premium is 8% and the risk free rate is 3%. You estimated that GOOG's stock price will growth to $1610 a share next year, from the current level of $1480., NFLX stock price will be $520 next year, where it is $480 currently, and AVGO stock will be at $330 a share next year, where it is $285 today.GOOG and NFLX will pay no dividend and AVGO will pay $14 in dividend next year. Should you buy/short either of these stocks?

Answer rating: 100% (QA)

To determine whether you should buyshort any of these stocks we need to calculate the expected returns and compare them to the required rate of return ... View the full answer