FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Estimate the expected return for your firm (verision- vz) by applying the CAPM based on the following steps. Use the =slope() function to find the

Estimate the expected return for your firm (verision- vz) by applying the CAPM based on the following steps.

  • Use the =slope() function to find the beta. Your y is the stock return series, and your x is the market return series.
  • risk-free rate = .11% (or .0011)
  • Market premium = 6.5% (or 0.065)

Use this below for market monthly return series:

yymm
201601 -0,0576
201602 -0,0006
201603 0.0698
201604 0.0093
201605 0,0179
201606 -0,0003
201607 0.0397
201608 0.0052
201609 0.0027
201610 -0.02
201611 0.0487
201612 0.0185
201701 0.0198
201702 0,0361
201703 0.002
201704 0.0114
201705 0.0112
201706 0.0084
201707 0,0194
201708 0.0025
201709 0.026
201710 0.0234
201711 0.032
201712 0.0115
201801 0.0569
201802 -0,0354
201803 -0,0223
201804 0,0043
201805 0.0279
201806 0.0062
201807 0.0335
201808 0.036
201809 0.0021
201810 -0.0749
201811 0.0187
201812 -0.0936
201901 0.0862
201902 0.0358
201903 0,0129
201904 0,0417
201905 -0.0673
201906 0,0711
201907 0.0138
201908 -0.0242
201909 0.0161
201910 0.0221
201911 0.0399
201912 0.0291
202001 0.0002
202002 -0,0801
202003 -0.1326
202004 0.1365
202005 0.0559
202006 0,0247
202007 0.0578
202008 0.0764
202009 -0.0362
202010 -0.0209

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

PERMNO date TICKER RET 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 20000131 20000229 20000331 20000428 20000531 20000630 20000731 20000831 20000929 20001031 20001130 20001229 20010131 20010228 20010330 20010430 20010531 20010629 20010731 20010831 20010928 20011031 20011130 20011231 20020131 20020228 20020328 20020430 20020531 20020628 20020731 20020830 20020930 20021031 20021129 20021231 20030131 20030228 20030331 20030430 20030530 20030630 20030731 BEL BEL BEL BEL BEL BEL VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ 0.012345 -0.209889 0.249042 -0.024376 -0.107595 -0.039007 -0.067454 -0.071809 0.110315 0.201497 -0.028108 -0.107898 0.103940 -0.099181 -0.004040 0.124848 -0.003995 -0.024613 0.019346 -0.076639 0.082200 -0.072353 -0.056414 0.009787 -0.015276 0.009709 -0.014957 -0.121583 0.072052 -0.066279 -0.168493 -0.060606 -0.114839 0.390124 0.109110 -0.074737 -0.002194 -0.096656 0.022267 0.068317 0.012573 0.042272 -0.103042 VZ 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 20070629 20070731 20070831 20070928 20071031 20071130 20071231 20080131 20080229 20080331 20080430 20080530 20080630 20080731 20080829 20080930 20081031 20081128 20081231 20090130 20090227 20090331 20090430 20090529 20090630 20090731 20090831 20090930 20091030 20091130 20091231 20100129 20100226 20100331 20100430 20100528 20100630 20100730 20100831 20100930 20101029 20101130 20101231 20110131 20110228 20110331 20110429 20110531 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ -0.054215 0.045057 -0.017363 0.057307 0.050136 -0.062079 0.011109 -0.101396 -0.064641 0.003579 0.071672 -0.000260 -0.079802 -0.026271 0.031727 -0.086276 -0.061078 0.100438 0.038285 -0.105310 -0.044861 0.058535 0.019868 -0.035597 0.050239 0.058575 -0.032117 -0.024807 -0.006772 0.063197 0.053083 -0.097646 -0.016655 0.072243 -0.053030 -0.047751 0.018169 0.123434 0.016173 0.103623 0.011583 -0.014470 0.117776 0.009153 0.036496 0.043879 -0.007071 -0.022499 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 20070629 20070731 20070831 20070928 20071031 20071130 20071231 20080131 20080229 20080331 20080430 20080530 20080630 20080731 20080829 20080930 20081031 20081128 20081231 20090130 20090227 20090331 20090430 20090529 20090630 20090731 20090831 20090930 20091030 20091130 20091231 20100129 20100226 20100331 20100430 20100528 20100630 20100730 20100831 20100930 20101029 20101130 20101231 20110131 20110228 20110331 20110429 20110531 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ -0.054215 0.045057 -0.017363 0.057307 0.050136 -0.062079 0.011109 -0.101396 -0.064641 0.003579 0.071672 -0.000260 -0.079802 -0.026271 0.031727 -0.086276 -0.061078 0.100438 0.038285 -0.105310 -0.044861 0.058535 0.019868 -0.035597 0.050239 0.058575 -0.032117 -0.024807 -0.006772 0.063197 0.053083 -0.097646 -0.016655 0.072243 -0.053030 -0.047751 0.018169 0.123434 0.016173 0.103623 0.011583 -0.014470 0.117776 0.009153 0.036496 0.043879 -0.007071 -0.022499 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 20110630 20110729 20110831 20110930 20111031 20111130 20111230 20120131 20120229 20120330 20120430 20120531 20120629 20120731 20120831 20120928 20121031 20121130 20121231 20130131 20130228 20130328 20130430 20130531 20130628 20130731 20130830 20130930 20131031 20131129 20131231 20140131 20140228 20140331 20140430 20140530 20140630 20140731 20140829 20140930 20141031 20141128 20141231 20150130 20150227 20150331 20150430 20150529 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ 0.008123 -0.039014 0.024795 0.017558 0.018478 0.020281 0.063345 -0.048853 0.011949 0.003149 0.069317 0.031204 0.067243 0.027003 -0.048737 0.061248 -0.009107 -0.011649 -0.019266 0.019760 0.066957 0.056 308 0.107324 -0.100723 0.038366 -0.006853 -0.042441 -0.014880 0.093519 -0.017620 -0.009674 -0.012006 -0.009163 -0.000210 -0.006517 0.069120 -0.020616 0.041283 -0.011900 0.003412 0.016203 0.006766 -0.075311 -0.011116 0.081820 -0.016582 0.048530 -0.019826 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 65875 20150630 20150731 20150831 20150930 20151030 20151130 20151231 20160129 20160229 20160331 20160429 20160531 20160630 20160729 20160831 20160930 20161031 20161130 20161230 20170131 20170228 20170331 20170428 20170531 20170630 20170731 20170831 20170929 20171031 20171130 20171229 20180131 20180228 20180329 20180430 20180531 20180629 20180731 20180831 20180928 20181031 20181130 20181231 20190131 20190228 20190329 20190430 20190531 2010 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ -0.057241 0.015662 -0.016670 -0.054336 0.090439 -0.030503 0.016942 0.093358 0.015209 0.066036 -0.047615 -0.000785 0.097053 0.002418 -0.055586 -0.006688 -0.063534 0.037422 0.069739 -0.071047 0.012651 -0.017731 -0.046410 0.015901 -0.042453 0.096675 -0.008884 0.031686 -0.020812 0.063088 0.040086 0.032685 -0.117070 0.001676 0.044333 -0.034043 0.055381 0.038163 0.052866 -0.018025 0.080586 0.056227 -0.067662 -0.009916 0.033781 0.038826 -0.022620 -0.049659 VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ VZ Cr7 65875 65875 65875 65875 65875 65875 20190731 20190830 20190930 20191031 20191129 20191231 VZ VZ VZ VZ VZ VZ -0.022011 0.052289 0.037827 0.012011 -0.003804 0.019256

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

10.2 Find the critical value(s) of t that specify the rejection region in these situations: a. A two-tailed test with a = 0.01 and 12 df b. A right-tailed test with a 0.05 and 16 df c. A two-tailed...

Answered: 1 week ago

Question

★★★★★
On August 1, 2007, Dell Computer Corporations stock closed trading at $27.76 per share, whereas Apple Corporations shares closed at $133.64. Does this mean that because Apples stock price is roughly...

Answered: 1 week ago

Question

★★★★★
Check my wor A contract does not exist for purposes of applying the revenue recognition principle in all of the following cases except for when Multiple Choice 4:22 The seller believes it is not...

Answered: 1 week ago

Question

★★★★★
Two costs of construction of a small, remote mine are for labor and transportation. Labor costs are expected to be $120,000 the first year, with inflation of 6% annually for 4 years. Unit...

Answered: 1 week ago

Question

★★★★★
The process of recruitment has always been a high volume and constant in the hospitality industry. The industry has a relatively large proportion of entry level, low skilled jobs which by their...

Answered: 1 week ago

Question

★★★★★
For each of the problems below, the material is assumed to be carbon (M55 fiber) / epoxy composite with the following properties: E = 40 Msi E2 = 1.8 Msi V12 = 0.3 G12 = 0.7 Msi X = 230 ksi Xc = -180...

Answered: 1 week ago

Question

★★★★★
Directed Research on a Company (10% of overall grade) The purpose of this assignment is to provide the opportunity to demonstrate your ability to research a global company and show how companies can...

Answered: 1 week ago

Question

★★★★★
Johanna Strauss had worked for more than 25 years as the executive assistant of top managers in large Canadian corporations. After retirement she decided to go on a trip around the world until she...

Answered: 1 week ago

Question

★★★★★
need answer all please asap 13. The Centers for Disease Control and Prevention reports that 25% of baby boyy 6-8 months old in the U.S. weight more than 20 pounds. A sample of 16 babies is studied. n...

Answered: 1 week ago

Previous Question Next Question