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Analyzing Stock Price of Tesla Using CAPM
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knitr::opts_chunk$set(echo = TRUE)

Summary

This project analyses the price of Tesla's stock, ticker TSLA, to determine whether the asset is fairly priced, or mispriced. This will be done through comparing the performance of TSLA to the overall performance of the stock market. To get the performance of the stock market the SPDR S&P 500 trust, ticker SPY, will be used. The SPY is a good indicator of the overall market performance as it mimics the S&P 5000, and is the largest global ETF.


Understanding CAPM

The Capital Asset Pricing Model, known as CAPM,


Install Packages

The following R libraries will be required:

  • Dplyr
  • Ggplot2

Analysing Data

Including Code

You can include R code in the document as follows:

summary(cars)

Including Plots

You can also embed plots, for example:

plot(pressure)

Note that the echo = FALSE parameter was added to the code chunk to prevent printing of the R code that generated the plot.