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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Hi, I need this assignment in 5-6 hours......thanks
There is a attached excell file in the email. For this assignment you only need the last worksheet, that it says beta. I have listed below a detailed explanation of how to do the assignment. The first 2 parts it want to find the beta of the stock and the return on equity. This is the easy part. not gonna take more than 15 min. The key and most important part of assignment is part 3, where you need to write a discussion about what was happening in first 2 parts with the stock( not too technical though) Thanks
1). First you need to find the stock beta. In order to do that you need to run regression on "NFLX BETA" worksheet(last worksheet) of "ROR" column to find regression beta. And the stock beta=(2/3 regression beta+ 1/3*1).
2).Second you need to find the the return on equity (Re). According to the CAPM Re=Rf+beta(Rm-Rf), beta as calculated through regression and formula above, and Rf is the 15-yr long-term bonds instead of T-bill. Market risk premium (Rm-Rf) is 5.6%.Â
3) This is key; After the first 2 steps( which I considered very easy…just run a regression on excel and enter the formulas), I need someone to write a half to one page discussion on the observation of what has to be found in the previous 2 steps.( not too technical though) Thanks
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