Facebook's Beta is 1.2 and has achieved a 3-year average return of 12.53%. The riskless...

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Finance

  1. Facebook's Beta is 1.2 and has achieved a 3-year average return of 12.53%. The riskless rate of return is 2.4% and the market risk premium is 10.9%. Comparing Facebook's expected return and average return, is Facebook a good investment?

    a.

    Maybe, the stock's performance is expected to be equal to the historical average

    b.

    No, the stock's performance is expected to be less than the historical average

    c.

    Yes, the stock's performance is expected to be better than the historical average

    d.

    No, Facebook is an outdated platform - TikTok is where its at

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