Question: The required return rates from number 5 that are needed to answer this question is: Ford: 12.89% Tesla: 17.90% 6. Construct a graph of the
The required return rates from number 5 that are needed to answer this question is:
Ford: 12.89%
Tesla: 17.90%
6. Construct a graph of the Security Market Line given by the parameters in \#5. Point out the SML returns you calculated in \#5 on your SML. Also, find and plot Ford's and Tesla's expected returns from the information given below gathered from their recent Yahoo Finance stock quotes against each stock's beta on your SML graph. Would you recommend buying Ford and/or Tesla based on this information? Explain your answers. Note: you are evaluating each stock individually, not in comparison in one another. 6. Construct a graph of the Security Market Line given by the parameters in \#5. Point out the SML returns you calculated in \#5 on your SML. Also, find and plot Ford's and Tesla's expected returns from the information given below gathered from their recent Yahoo Finance stock quotes against each stock's beta on your SML graph. Would you recommend buying Ford and/or Tesla based on this information? Explain your answers. Note: you are evaluating each stock individually, not in comparison in one another
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