Give the definition of the stock beta

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1. Give the definition of the stock beta. Estimate AMZN beta relative to Nasdaq 100 using last 250 days historical regression from April 9, 2018. You can use QQQ as a proxy for Nasdaq 100. Please use adjusted price for both and subtract risk free rate (Use 3 month Libor).

2. A stock is expected to pay no dividends for the first three years, that is, D1 = $0, D2 = $0, and D3 = $0. The dividend for Year 4 is expected to be $5.00, and it is anticipated that the dividend will grow at a constant rate of 8 percent a year thereafter. The risk-free rate is 4 percent, the market risk premium is 6 percent, and the stock's beta is 1.5. Assuming the stock is fairly priced, what is its current stock price? Show all work.

Reference no: EM132032642

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