Method 3: The CAPM model and the Security Market Line.

Go to Morningstar on the Rivier Library Database. Under the Stock Tab on Morningstar, type in McDonalds ticker (MCD).

What is Morningstars Beta estimate for McDonalds? It should be on the Quote Tab page. ___________________________

Based on your above answer, is McDonalds stock riskier or less risky than the average stock on the market?______________

Explain your answer in 2-3 sentences below:

Collect Morningstar Beta values for the following stocks. Include a copy of the source data page. Complete Table 3 below:

Table 3
Company #	Company Name	Ticker	Dollar Amount Invested	Beta ( from Morningstar)
1	Ford	F	$27,000
2	Wal-Mart Stores Inc	WMT	$33,000
3	Home Depot	HD	$50,000
4	3M	MMM	$20,000