Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2) A certain number of (whole) years of data given is for ticker XYZ and the S&P 500. the 10 year treasury rate is 1.271%
2) A certain number of (whole) years of data given is for ticker XYZ and the S&P 500. the 10 year treasury rate is 1.271% and the market risk premium (MRP) is judged to be 5.5%. calculate the following with a discrete returns assumption:
a. stock return compound annual growth rate (CAGR) for ticker XYZ
b. stock bolding period return (HPR) for ticker XYZ
c. beta of XYZ
d. XYZ's required return on equity (Re)
Date | XYZ Adj Close | S&P 500 Adj Close |
1/1/2018 | 38.63 | 264.79 |
2/1/2018 | 35.84 | 255.16 |
3/1/2018 | 33.10 | 247.18 |
4/1/2018 | 33.80 | 249.45 |
5/1/2018 | 39.29 | 255.51 |
6/1/2018 | 36.25 | 255.84 |
7/1/2018 | 35.18 | 266.50 |
8/1/2018 | 33.46 | 275.01 |
9/1/2018 | 31.25 | 275.40 |
10/1/2018 | 34.33 | 257.53 |
11/1/2018 | 35.61 | 262.31 |
12/1/2018 | 31.38 | 237.82 |
1/1/2019 | 36.99 | 258.36 |
2/1/2019 | 37.43 | 266.74 |
3/1/2019 | 35.17 | 270.38 |
4/1/2019 | 37.29 | 282.66 |
5/1/2019 | 31.92 | 264.63 |
6/1/2019 | 36.89 | 281.68 |
7/1/2019 | 39.04 | 287.33 |
8/1/2019 | 35.89 | 282.52 |
9/1/2019 | 36.27 | 286.69 |
10/1/2019 | 36.32 | 294.38 |
11/1/2019 | 35.19 | 305.04 |
12/1/2019 | 35.78 | 312.37 |
1/1/2020 | 32.99 | 313.77 |
2/1/2020 | 30.13 | 288.93 |
3/1/2020 | 20.53 | 251.38 |
4/1/2020 | 22.29 | 284.96 |
5/1/2020 | 25.88 | 298.54 |
6/1/2020 | 25.30 | 302.50 |
7/1/2020 | 24.89 | 321.73 |
8/1/2020 | 29.63 | 344.18 |
9/1/2020 | 29.59 | 329.98 |
10/1/2020 | 34.53 | 323.04 |
11/1/2020 | 43.84 | 358.17 |
12/1/2020 | 41.64 | 369.87 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started