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Visit your favorite financial website. Collect information on Chipotle Mexican Grill's Beta (from the website!) Visit either the WSJ Bondcenter or the Fed H.15 release
Visit your favorite financial website.
- Collect information on Chipotle Mexican Grill's Beta (from the website!)
Visit either the WSJ Bondcenter or the Fed H.15 release or the U.S. Treasury website to find the current 3-month T-bill rate (yield, %). (This will be your risk free interest rate)
- The average annual return of the S&P500 index was 9.1740%. Use this as your market return.
- If you are interested in seeing how I calculated this, see this file.
- Using the Capital Asset Pricing Model (CAPM) with three items above (beta, risk-free rate, market return) calculate Chipotle Mexican Grill's expected return.
- Compare the expected return you calculated to the (historical) 5 year average annual return you calculated from the previous Module 9 exercise.
Report the data that you collected along with the returns that you calculated in a single word file
For Chipotle Mexican Grill. The average annual return I calculated from Module 9 is 428.80%. Thank you!
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