FINA 363 EXAM 2

Company	Walmart	Chiquita	Whole Foods
Average Daily Return	0.057%	0.034%	0.038%
Standard Deviation of Daily Returns	0.92%	2.95%	1.90%
Correlation with the Market	0.51	0.48	0.56

Average Daily Return of the Market	0.048%
Standard Deviation of the Market Returns	0.99%
Annual Risk Free Rate	2%
Expected Annual Market Return	9%

10) What is Walmarts Beta over this period?

a. 0.47

b. 0.77

c. 1.07

d. 1.43

e. 1.77

11) Using the CAPM model, what is Chiquitas required rate of return on equity (cost of equity)?

a. 5.29%

b. 7.47%

c. 9.47%

d. 11.98%

e. 14.31%

*******PLEASE SHOW YOUR WORK************