QUESTION 3 Given the information in the table, what is the market's expected return on the stock? Netflix, Inc. (NFLX) NasdaqGS-NasdaqGS Real Time Price. Currency in USD 488.24 +3.57 (+0.74%) At close: November 20 4:00PM EST Summary Company Outlook Previous Close Open Bid Ask Volume 484.67 Avg. Volume 485.22 488.50 x 1200 Day's Range 52 Week Range 290.25-575.37 489.00 x 800 481.57-494.76 4,255,924 Chart Market Cap Beta (5Y Monthly) PE Ratio (TTM) EPS (TTM) Conversations Stati Earnings Date Forward Dividend & Yield Ex-Dividend Date 6,176,382 1y Target Est Add to watchlist 215.702B 1.02 78.85 6.19 Jan 19, 2021- Jan 25, 2021 N/A (N/A) N/A 547.53

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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QUESTION 3
Given the information in the table, what is the market's expected return on the stock?
Netflix, Inc. (NFLX)
NasdaqGS-NasdaqGS Real Time Price. Currency in USD
488.24 +3.57 (+0.74%)
At close: November 20 4:00PM EST
Summary Company Outlook
Previous Close
Open
Bid
Ask
Day's Range
Volume
484.67
Avg. Volume
485.22
488.50 x 1200
489.00 x 800
52 Week Range 290.25-575.37
481.57-494.76
4,255,924
6,176,382
Chart
Market Cap
Beta (5Y
Monthly)
PE Ratio (TTM)
EPS (TTM)
Conversations Stati
Earnings Date
Forward
Dividend & Yield
Ex-Dividend Date
1y Target Est
Add to watchlist
215.702B
1.02
78.85
6.19
Jan 19, 2021-
Jan 25, 2021
N/A (N/A)
N/A
547.53
Transcribed Image Text:QUESTION 3 Given the information in the table, what is the market's expected return on the stock? Netflix, Inc. (NFLX) NasdaqGS-NasdaqGS Real Time Price. Currency in USD 488.24 +3.57 (+0.74%) At close: November 20 4:00PM EST Summary Company Outlook Previous Close Open Bid Ask Day's Range Volume 484.67 Avg. Volume 485.22 488.50 x 1200 489.00 x 800 52 Week Range 290.25-575.37 481.57-494.76 4,255,924 6,176,382 Chart Market Cap Beta (5Y Monthly) PE Ratio (TTM) EPS (TTM) Conversations Stati Earnings Date Forward Dividend & Yield Ex-Dividend Date 1y Target Est Add to watchlist 215.702B 1.02 78.85 6.19 Jan 19, 2021- Jan 25, 2021 N/A (N/A) N/A 547.53
QUESTION 4
The market risk premium is 5.41%. What is this stock's risk premium?
Alibaba Group Holding Limited (BABA)
NYSE - NYSE Delayed Price. Currency in USD
270.74 +10.85 (+4.17%)
At close: November 20 4:02PM EST
Summary Company Outlook
Previous Close
Open
Bid
Ask
Day's Range
Volume
259.89
Avg. Volume
263.97
271.90 x 1200
271.98 x 800
52 Week Range 169.95-319.32
261.90-272.37
32,819,979
Chart
Market Cap
Beta (5Y
Monthly)
PE Ratio (TTM)
EPS (TTM)
Conversations Stat
Earnings Date
Forward
Dividend & Yield
Ex-Dividend Date
17,265,179 1y Target Est
Add to wat
706.325B
1.28
29.08
9.31
Feb 11, 2021-
Feb 15, 2021
N/A (N/A)
N/A
336.62
Transcribed Image Text:QUESTION 4 The market risk premium is 5.41%. What is this stock's risk premium? Alibaba Group Holding Limited (BABA) NYSE - NYSE Delayed Price. Currency in USD 270.74 +10.85 (+4.17%) At close: November 20 4:02PM EST Summary Company Outlook Previous Close Open Bid Ask Day's Range Volume 259.89 Avg. Volume 263.97 271.90 x 1200 271.98 x 800 52 Week Range 169.95-319.32 261.90-272.37 32,819,979 Chart Market Cap Beta (5Y Monthly) PE Ratio (TTM) EPS (TTM) Conversations Stat Earnings Date Forward Dividend & Yield Ex-Dividend Date 17,265,179 1y Target Est Add to wat 706.325B 1.28 29.08 9.31 Feb 11, 2021- Feb 15, 2021 N/A (N/A) N/A 336.62
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