Question: Please answer all these I really need the help!!!!!!!! Problem Set: Find the expected returns of following stocks by using the CAPM equation: 1. Facebook

Please answer all these I really need the help!!!!!!!!

Problem Set:

Find the expected returns of following stocks by using the CAPM equation:

1. Facebook (FB)

2. Wells Fargo & Company (WFC)

3. Essentra plc (FLRAF)

Provide explanation and references of following:

  1. Interpret the expected return you get from CAPM equation. How beta value affects the expected return of the stock.
  2. From where you are obtaining value of beta.
  3. Are you using 2 years or 5 years beta value? Explain your reasoning.
  4. What is the source of your risk-free rate and what is your reason to select it?

If all answers are no addressed properly, problem set would be considered incomplete and will carry no grades. Again, do not forget to provide the references.

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