CAPM calculations

$\backslash$beta : Investigate the IGO limited company$$s beta fr

Choose a beta from one $(1)$ provider and discuss the following to explain your justification.

Time period $($how far back$)$

Calculation method $($variables used$)$

Presence of once$-$off events in the time period

Rf: Use the yield of a $10-$years Australian government bond for the risk$-$free rate.

Rm: Calculate market return using cumulative price return of ASX All Ordinary index $($the period should match exactly with your reporting period$).$ If it is less than $5\%,$ you have to use an adjusted Rm$.$ Perform the following steps in sequence and show your findings for each step:

Use the financial year instead of reporting period, if they are different for your company.

Use a total return market index instead of price return index matching the time period.

As a last resort use the average cumulative total returns of longer period $($say $2-5$ years$)$IGO Ltd IGO a Sign$-$up for a trial to access Morningstar Research $>$

Australian Stock Exchange $-$ Equities & Equity Options: IGO $|$

Price updated as of Apr $04,2024,4$:$10$ PM EDT $|$ AUD

Key Ratios will be retired soon, please see Key Statistics for content.

Include a table to show clearly the time frames of the variables used to calculate CAPM.

Variable Rate $(\%)$ Sourced at $($date$)$ Period of $($date to date$)$

Rf eg$.$ X$\%$ eg$\mathrm{.}14/07/2021$ eg$\mathrm{.}14/07/2021-13/07/2031$

Rm eg$\mathrm{.}14/07/2021$ eg$\mathrm{.}01/07/2019-30/07/2020$

Beta eg$\mathrm{.}14/07/2021$ eg$\mathrm{.}14/07/2019-13/07/2021$