Question
From the Wall Street Journal, a website such as Yahoo! Finance, or some other source, obtain a current estimate of the risk-free rate (use a
From the Wall Street Journal, a website such as Yahoo! Finance, or some other source, obtain a current estimate of the risk-free rate (use a 10-year Treasury bond). Use the Value Line Investment Survey or Yahoo! Finance to obtain the beta for each of the following stocks:
Ford (autos)
Dell (computers)
Sempra Energy (utilities)
Kroger (groceries)
Bank of America (financial services)
Use the information you gathered along with the market risk premium on large stocks given in the chapter to find the required return for each stock with the capital asset pricing model.
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