Question: Need help in this question also in full detail in steps please! 1)You want to find the expected return for Tesla Inc. using the CAPM.

Need help in this question also in full detail in steps please!

1)You want to find the expected return for Tesla Inc. using the CAPM. First, you need the market risk premium. Use the Canada 3-month Treasury Bill Yield of 4.99%. as a proxy for the risk- free rate (remember, T-Bills are a very short term government bonds). Use the average common stock return in Table 12.3 in your book (page 442) to calculate the market risk premium. Next, on the www.finance.yahoo.com site enter the ticker symbol TSLA for Tesla, and find the beta for this firm. What is the expected return for Tesla Inc., using CAPM? What assumptions have you made to arrive at this number?

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