Compute the expected return on facebook

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Reference no: EM133119998

Compute the Expected Return on Facebook (Meta) Stock (Google search "ticker symbol" for your company to get your company's ticker symbol): you can get the stock beta from finance.yahoo.com (enter your company ticker symbol in the "Quote Lookup" on the upper right, and the beta will appear on the upper left in the second column) to compute the expected return on that equity using the CAPM. For the risk-free rate, use the 30-year Treasury bond yield, which is listed every moment for GT30:Gov at https://www.bloomberg.com/markets/rates-bonds/government-bonds/us An aggregate market risk premium of 5% (based on survey estimates and historical averages) may be utilized (this 5% estimate is the minimum extra return required by investors for investing into the world market portfolio of all risky assets).

Reference no: EM133119998

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