Analysis on Stock Prices, Using the last 3 years of closing stock prices on the first

Analysis on Stock Prices

Using the last 3 years of closing stock prices on the first trading day of each month from January, 2010 through December 2012 for Apple (APPL) and the S&P 500 (market) for the same date range

1) Calculate the average return (monthly and yearly) for Apple stock and the market

2) Calculate the standard deviation of returns for Apple stock and the market (monthly and yearly)

3) Calculate the coefficient of variation of returns for Apple stock and the market (monthly and yearly)

4) Calculate the beta of Apple stock relative to the market (monthly and yearly)

5) Using a risk free rate of 1.5% and a market risk premium of 8% calculate the required rate of return for Apple using the security market line for each year

6) Comment on your estimated annual returns for each year relative to your required return from #5.

View Complete Question

Related Questions in Corporate Finance

Q : Problem on Zero coupon bonds

Robertsons, Inc. is planning to enlarge its specialty stores into 5 other states and finance the expansion by issuing 15-year zero coupon bonds with a face value of $1,000. When your opportunity cost is 8 % and similar coupon-bearing bonds will recompense semi-annuall

Q : Walt disney WAAC You work in Walt

You work in Walt Disney Company’s corporate finance and treasury department and have just been assigned to the team estimating Disney’s WACC. You must estimate this WACC in preparation for a team meeting later today....?

Q : Is Capital Cash Flow identical with

Is Capital Cash Flow identical with Free Cash Flow?

Q : Evaluating Beta of a Corporation

Baldwin Corporation is planning to expand into the business of providing on-demand movies. Baldwin has debt-to-equity ratio of .25, its pretax cost of debt is 9%, and its marginal tax rate is 40%. The Harrington Corporation is already in the on-demand movie business,

Q : Variance of a portfolio The variance of

The variance of a portfolio of 40 stocks will be the addition of _______ variance terms and _______ covariance terms. A) 40; 1560B) 40; 1600C) 80; 40D) 1600; 40

Q : Minimum annual savings problem XYZ

XYZ Company is interested in purchasing a new corporate jet for $6 million. This will depreciate the jet completely in 5 years and then sell it for $5 million. The jet will utilize $60,000 in fuel annually, and its maintenance will be $40,000 yearly. The tax rate of X

Q : Company Valuation Project Hello, Need a

Hello, Need a top-notch finance expert to complete a company valuation assignment for me for a class. Will attach details. Please inform me if you have your graduate level resource who is good with company valuations and executive summary writeup of the analysis please. English writing skills ar

Discover Q & A

Leading Solution Library

Avail More Than 1450102 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1959475
Asked

3,689

Active Tutors

1450102

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment