What is the expected return using the capm model

Assignment Help Financial Management

Reference no: EM131881851

	1/12/17		3/14/17		Change		shares invested		Initial investment		Current investment
VZ		$52.68		$49.39		$(3.29)		3416		$179,954.88		$168,716.24

AAPL		$119.15		$139.00		$19.85		1510		$179,916.50		$209,890.00

XOM		$86.34		$81.22		$(5.12)		2084		$179,932.56		$169,262.48

WMT		$67.97		$70.75		$2.78		2648		$179,984.56		$187,346.00

WFC		$54.50		$58.73		$4.23		3302		$179,959.00		$193,926.46

										$899,747.50		$929,141.18

1. Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with a market return at 8% and at 12%. [Note that the growth rate must be less than the required rate of return.] Make sure you list the date of the valuation and the closing share price of your firm's stock. Each firm's required rate of return will depend on its beta.

2. Is the stock of each of these companies over or undervalued?

3. What is the expected return using the CAPM model?

4. Prepare a time series ratio analysis (liquidity, activity, debt, and profitability) Identify any events during the period that may have caused the stocks' prices to increase or decrease, explaining how these events affect the stocks' prices.

Reference no: EM131881851

Questions Cloud

Logistics clusters-global supply chains : In global supply chains there is a concept known as logistics clusters as demonstrated by the number of companies

How much would you have to invest today : You want $5000 5 years from now and you can get a 4% rate of return. How much would you have to invest today to get that $5000 in 5 years?

What is the future worth of jeans investment : If Jean does this for 10 years, and the investment pays 10% annual interest, what is the future worth of her investment?

Global supply chain management and corporate strategy : What is the relationship between global supply chain management and corporate strategy?

What is the expected return using the capm model : Is the stock of each of these companies over or undervalued? What is the expected return using the CAPM model?

Supply chain operations reference model : Describe the Supply Chain Operations Reference Model. Is it applicable to all supply chains? Support your position.

Determine the balance in each of the work in proces accounts : determine the balance in each of the following accounts at the end of April- Work in Process, Finished Goods and Cost of Goods Sold.

Arguments for outsourcing operations : One of the arguments for outsourcing operations to low cost countries according to several studies over the past decade has been "to lower inventory

Describe the forms of transportation : Describe the forms of transportation involved the shipment of products from a plant in the interior of China to a store in New York City.

User Account

All Pages