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Many investment questions have two components. The first is running calculations and seeing if a...

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Accounting

Many investment questions have two components. The first is running calculations and seeing if a risk adjusted return of a particular asset fits within a portfolio and investment plan. The second, is determining if the investment should be made based on the moral and ethical questions that may be raised by the activity of a firm or the use of particular assets.

Tilray (TLRY) priced its IPO on the NASDAQ July 18, 2018. Tilray is a Canada based marijuana grower. The stock priced at $17 per share, has traded as high as $300, and traded recently at $6 per share. The return of around almost 20x from the IPO was certainly attractive, and the decline of 98% from the highs is not.

The objectives of this assignment are to answer:

1) Ignoring what business TLRY is involved in, should the stock be purchased today? In order to answer this question consider the expected return using a capital asset pricing model (see a collaborate how), how other consumer stocks are trading, the type of portfolio of equities your risk profile prefers, the growth prospects in marijuana, and your analysis of the competition in marijuana.

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