Question
Use the dataset Assign3 data.xls (picture found below) which contains the monthly prices for Costco Wholesale Corporation (COST) Walmart Inc. (WMT), Target Corporation (TGT), and
Use the dataset Assign3 data.xls (picture found below) which contains the monthly prices for Costco Wholesale Corporation (COST) Walmart Inc. (WMT), Target Corporation (TGT), and the S&P 500 (SPY) for a five-year period, to answer the following questions. Also assume that the risk-free rate is 1.5% and the return on the market is 12%.
Question 1 What is your estimate of beta for Costco? (Answer with two decimals)
Question 2 What is your estimate of beta for Walmart? (answer with 2 decimals)
Question 3 What is your estimate of beta for Target?
(answer with 2 decimals
Question 4 What is your estimate of the required rate of return on equity (or cost of equity) for Costco using the CAPM? (Answer in Percent with 2 decimals)
Question 5 What is your estimate of the required rate of return on equity (or cost of equity) for Walmart using the CAPM? (Answer in Percent with 2 decimals)
Question 6 What is your estimate of the required rate of return on equity (or cost of equity) for Target using the CAPM? (Answer in Percent with 2 decimals)
Question 7 Which of the following firms has the highest cost of equity capital?
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