Assignment:
From the Wall Street Journal, a website such as Yahoo! Finance, or some other source, obtain a current estimate of the risk-free rate (use a 10-year Treasury bond). Use the Value Line Investment Survey or Yahoo! Finance to obtain the beta for two (2) of the below five (5) stocks:
Ford (autos)
Dell (computers)
Sempra Energy (utilities)
Kroger (groceries)
Bank of America (financial services)
Use the information you gathered along with the market risk premium on large stocks given in the chapter to find the required return for each stock with the capital asset pricing model. Please discuss your findings.
Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library. Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable or credible source of reference. The purpose is to bring in new information and how does it apply to our topic from a real-world perspective, instead of extending on definitions that are found in the book.