moodi ew History Bookmarks Develop Window Help June 1 F Flag question Question 25 May 1 2% Not yet answered Points out of 2.00 April 1 - 1% $400 Mil. 1% $250 MIL. Suppose the stock return of company GOOG Ltd. follows the CAPM and has a market beta of 1. For simplicity, the daily risk-free rate is 0%, $300 MII. Market Return Beginning Market Capitalization of GOOG (1) On April 1, the CA state attorney general files a surprising $30 million lawsuit against GOOG. After the announcement, the market consensus that GOOG has a 50% chance of losing the case. What is your best guess of GOOG's stock return on this date? Select one: a. -1% b.1% 30 C. 1.596 d. -5% P-4% Pro istory Bookmarks . -4% P Flag question Question 26 Points out of 2.00 Not yet answered (2) Suppose the news about the lawsuit was leaked out on March 20, but the claim was thought to be only $21 million. Now, what is your best guess of GOOG's stock return on April 1? Select one: a. 1.5% b. 0% C.-0.5% d. 1% e. -1.5% tory -1.5% Points out of 2.00 Question 27 Not yet answered p Flag question (3) On May 1, new information is revealed about this lawsuit, which reduces the consensus estimate of losing by GOOG to 20%. What is your best guess of GOOG's stock return on this date? Select one: Ca.-19 b. 2.1% c.3.6% d. 1.7% e. 2.6% ory 1.7% 2.6% Question 28 Not yet answered Points out of 3.00 p Flag question (4) On June 1, the verdict date, GOOG loses the case, but the judge reduces the lawsuit payment. If GOOG's stock return on this date is -2%, what is your best guess of the actual payment? Select one: a. $25 million b. $27 million c. $22 million d. $18 million e. $10 million