ii.perform a share repurchase?iii.perform a stock split?iv.perform a reverse stock split? b.Can you find any evidence for the presence of a clientele effect? What would evenconstitute evidence in this case?c.Does Netflixengage in a so-called high dividend policy? Why or why not? Which evidence do you find?d.Do you see any evidence that Netflix acts upon shareholder pressure? Which evidence can you present?5)Risk review:a.Calculate Netflixs CAPM beta coefficient and provide an interpretation.
b.Compare Netflixs CAPM efficient to the beta of its main competitor and explain in detail:
i.how you calculated Netflixs beta,
ii.which input parameters you used,iii.the data of which period you processed (Hint: you need not stick to 5 years here!), and
iv.how you selected the main competitor(Note: you need not calculate the beta of the main competitor as well you may look it up)
v.Which of the 2 firms is the riskier investment in your opinion? Why?
Imagine a portfolio consisting of any full percentage (0% -100%) of Netflix stock (NFLX) and any full percentage of fellow NASDAQ listed firm Wynn Resorts (WYNN). This means you could have a portfolioconsisting only of Netflix stocks, only of Wynn Resort stocks or any mix in between.
a.Calculate and interpret the average returns of Netflix and Wynn Resort stocks individually using stock price data from the last 5 years.
b.Calculate and interpret the standard deviations of Netflix and Wynn Resort stocks returns individually using stock price data from the last 5 years.