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Current Stock 5 Years Dividend Beta 3 Mth Treasury Rate Walmart 83.37 68.25 0.52 0.46 1.95% Amazon 1,581.59 1,007.23 0 1.71 1.95% Lowe's 85.75 65.38

Current Stock 5 Years Dividend Beta 3 Mth Treasury Rate

Walmart 83.37 68.25 0.52 0.46 1.95%

Amazon 1,581.59 1,007.23 0 1.71 1.95%

Lowe's 85.75 65.38 1.64 1.34 1.95%

CVS 65.62 95.56 2 0.9 1.95%

  1. How do I Calculate the above average annual capital gain or loss (stock price change) over the last five years. Calculate the percentage change from five years ago, and divide by five. For example, if the stock price increased from 50 to 100 in five years, the percentage increase would be 100% and the average annual gain would be 20% (100 divided by 5). Which of these companies has the highest or lowest capital gain?
  2. how do I estimate the average total return above, which is the capital gain plus dividends. If the dividend yield is 2%, then the average total return would be 22% in the example above. Then which of these four companies has the highest or lowest total return? And does the order change?
  3. Finally, I do calculate the Treynor Ratio. First, take the total return for each of your four companies and subtract the three-month treasury bill rate (the "risk-free rate"). Then divide this by the beta of each company. This ratio is a measure of the risk-adjusted return of each stock. The higher the return, the higher the Treynor Ratio. But the higher the beta (which is a measure of risk), the lower the Treynor Ratio. Which of the companies has the highest or lowest risk-adjusted return? Does the order change from what was found in 1) and 2) above?

Last, How do I summarize findings using Word?

I need help with figuring all of this out. I'm lost!

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