Question: . If based on the CAPM regression on Facebook during 2017 - 2018, we get the following regression equation: y = 0.005 + 1.26x What

. If based on the CAPM regression on Facebook during 2017 - 2018, we get the following regression equation:

y = 0.005 + 1.26x

  • What is Facebook's alpha? What is its historical beta? What is Facebook's future beta?
  • What is your judgement about Facebook based on the performance in 2017-2018? Is it a good investment according to the criteria we mentioned in the class?

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