Solution-Monthly returns and excel functions slope and rsq

Monthly returns and excel functions slope and rsq

Assignment Help Finance Basics

Reference no: EM131226986

Identify a sample of food companies. For example, you could try Campbell Soup (CPB), General Mills (GIS), Kellogg (K), Kraft Foods (KFT), and Sara Lee (SLE).

a. Estimate beta and R2 for each company, using five years of monthly returns and Excel functions SLOPE and RSQ.

b. Average the returns for each month to give the return on an equally weighted portfolio of the stocks. Then calculate the industry beta using these portfolio returns. How does the R2 of this portfolio compare with the average R2 of the individual stocks?

c. Use the CAPM to calculate an average cost of equity (r equity) for the food industry. Use current interestrates-takea look at the end of Section 9-2-and a reasonable estimate of the market risk premium.

Reference no: EM131226986

Questions Cloud

What value would you expect your portfolio to have : If you have a portfolio with a market value of $1,000,000 and a beta (measured against the S&P 500) of 0.7, then if the market rises by 9.6 percent, what value would you expect your portfolio to have?

What is the annual rate of return of purchase : That well-known real estatemogul Napoleon Bonaparte sold us 827,000 square miles (529,280,000 acres-there are 640 acresin a square mile). We paid $15 million. Assume that part of the US is worth an average of $5,000per acre in 2015. What is the an..

Show that the given encryption system is perfectly secure : Show that the given encryption system is perfectly secure for , by checking the definition given in class for perfect security - version 1 (Note: you need to consider an arbitrary distribution on because the definition must hold for all possible d..

What is the annual rate of return of purchase : Assume that part of the US is worth an average of $5,000per acre in 2015. What is the annual rate of return of this purchase for the U.S.?

Monthly returns and excel functions slope and rsq : Identify a sample of food companies. For example, you could try Campbell Soup (CPB), General Mills (GIS), Kellogg (K), Kraft Foods (KFT), and Sara Lee (SLE). a. Estimate beta and R2 for each company, using five years of monthly returns and Excel fu..

Design a discrete transistor circuit : Design a discrete transistor circuit that produces a full-scale output of 5 V for a maximum motor speed of 60 revolutions per second.

Percent for the next three years and the stock : Davenport Corporation's last dividend was $7.00 and the directors expect to maintain the historic 3 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 5 percent for the next t..

Design code of ethics that can generalized to organizations : Use the information from your reading and research to design a code of ethics that can be generalized to a variety of organizations. Present your code of ethics in a paper of 1,000-1,250 words.

What would earnings per share : a. How much did Quantum Technology earn during 20X2? b. What would earnings per share be if 42,400 shares of common stock were outstanding? (Round your answer to 2 decimal places.)

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Explain the process to calculate external funding needs

Explain the process to calculate external funding needs and the importance to a business.

Calculate the interest rate

Calculate the interest rate on 1,2, 3, 4, 5, 10, and 20 year Treasury securities. Please show all work (steps involved).

What effect would it have on your estimate of deqss

the digital electronic quotation system deqs corporation pays no cash dividends currently and is not expected to for

Explaining visa ipo

Provide a brief description of Visa, its main business and operational activities. Provide a short synopsis of the main developments of the company over the past few years.

Determine the value of stock

Medtrans is A profitable company that is not paying a dividend on its common stock. James Weber, an analyst for A. G. Edwards, believes that Medtrans will begin paying a $1.00 per share dividend in two years and that the dividend will increase 6 perc..

Draw a graph of money demand and money supply

Use the graph to illustrate how fluctuations in velocity imply that targeting money growth results in greater volatility of interest rates.

What are the reasons for a firm having lower cash from

what are the reasons for a firm having lower cash from operations than working capital from operations? what are the

How much higher is the effective annual rate

She agrees to lend you the $1,000, but she wants you to pay her $10 of interest at the end of each of the first 11 months plus $1,010 at the end of the 12th month. How much higher is the effective annual rate under your friend's proposal than unde..

Assume that you are a consultant to a company and you have

assume that you are a consultant to a company and you have been provided with the following data d1 1.00 po 25.00 and

What is the amount per share that old shareholders will lose

Since the shares will be offered to the public at large, what is the amount per share that old shareholders will lose if they are excluded from purchasing new shares?

What are the present values of the relevant investment cash

Assume the appropriate discount rate is 9.6 percent. What are the present values of the relevant investment cash flows?

Use the library course materials or other credible sources

use the library course materials or other credible sources to research risk control strategies. write a 4 5 page paper

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd