Estimate of beta for Tesla Motors, Inc

Investment and Analysis and Recommendation Paper for Tesla Motors, Inc.
August 31, 2020
Business Brief: Franklin Fan Company Academic Essay
August 31, 2020

Estimate of beta for Tesla Motors, Inc

Estimate of beta for Tesla Motors, Inc

Paper details:

For this week’s section of your Investment Analysis and Recommendation Paper, find an estimate of beta for your company. You might consider examining/using an industry average beta, especially if the reported beta you find seems unrealistic or inappropriate. Note: You should probably check your beta across a few different sources, because sometimes they vary. Find the current interest rate (yield) for 3-month Treasury bills. Determine an appropriate market risk premium. Be sure to consider the size of your firm when estimating an appropriate premium.

After making your calculations:
• Using all this information, what is the expected return for your company using CAPM?

• In Week 3, you estimated a required rate of return using the dividend discount model. How does your CAPM number compare?
Write up a 1-page summary of your findings, including any calculations you might have made.