Which includes comparing required return on the stock

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Reference no: EM132061115

AMAZON COMPANY

Risk Return analysis, which includes comparing the ''required return'' on the stock as derived from applying the SML equation against the "forecasted" or "projected" Return as obtained from the analysts' forecasts, company forecast or your own forecast. This is can be estimated by projected near tear ROE or the projected return on the stock given it near term target price and dividend yield, if any. For the SML, you could estimate Rrf from T bill or the 10 year T bond rate (preferred); beta from any public database.

Reference no: EM132061115

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