You can download data for the following questions from finance.yahoo.com Look at the companies listed in Table 8.2. Calculate monthly rates of return for two successive five-year periods. Calculate betas for each subperiod using the Excel SLOPE function. How stable was each company's beta? Suppose that you had used these betas to estimate expected rates of return from the CAPM. Would your estimates have changed significantly from period to period? (Reference Table 8.2) TABLE 8.2 These estimates of the returns expected by investors in November 2014 were based on the capital asset pricing model. We assumed 2% for the interest rater, and 7% for the expected risk premium rm-. Expected Return Stock Caterpillar Dow Chemical Ford Microsoft Apple Johnson & Johnson Walmart Campbell Soup Consolidated Edison Beta (B) 1.66 1.65 1.44 0.98 0.91 0.53 0.45 0.39 0.17 13.6 13.5 12.1 8.9 84 5.7 5.2 4.7 3.2 2.0 You can download data for the following questions from finance.yahoo.com Look at the companies listed in Table 8.2. Calculate monthly rates of return for two successive five-year periods. Calculate betas for each subperiod using the Excel SLOPE function. How stable was each company's beta? Suppose that you had used these betas to estimate expected rates of return from the CAPM. Would your estimates have changed significantly from period to period? (Reference Table 8.2) TABLE 8.2 These estimates of the returns expected by investors in November 2014 were based on the capital asset pricing model. We assumed 2% for the interest rater, and 7% for the expected risk premium rm-. Expected Return Stock Caterpillar Dow Chemical Ford Microsoft Apple Johnson & Johnson Walmart Campbell Soup Consolidated Edison Beta (B) 1.66 1.65 1.44 0.98 0.91 0.53 0.45 0.39 0.17 13.6 13.5 12.1 8.9 84 5.7 5.2 4.7 3.2 2.0