* Add to watchlist For questions, 33-35, use the information in the table below: NIKE,...
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* Add to watchlist For questions, 33-35, use the information in the table below: NIKE, Inc. (NKE) NYSE - NYSE Delayed Price. Currency in USD 75.20 0.00 (0.00%) Buy At close: November 14 4:00PM EST Summary Chart Conversations Statistics Historical Data 119.426B Previous Close 75.20 0.96 Open Market Cap Beta (3Y Monthly) PE Ratio (TTM) 76.32 Bid 74.49 x 800 59.59 Ask 82.76 x 3000 1.26 EPS (TTM) Day's Range 74.89 - 77.49 Dec 19, 2018 - Dec 24, 2018 52 Week Range 56.41 - 86.04 0.80 (1.07%) Earnings Date Forward Dividend & Yield Ex-Dividend Date 1y Target Est Volume 7,984,223 2018-08-31 Avg. Volume 7,538,563 87.76 I 33. 4 points. Compute the holding period return for the stock. 34. 4 points. If the stock has a required return of 7.0%, what is the value of the stock? 1416 35. 3 points. What is the stock fair return according to CAPM? Assume a risk free rate of 3.5% and a market risk premium of 5% 35a. 2 points. By comparing, the fair return according to CAPM to the HPR that you calculated in #33, do you think the stock is overvalued or undervalued? Should you buy it? 35b. 4 points. What current stock price would reflect a fair return according to CAPM
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