The Rate of Return for SLP Company Comcast

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Rate of Return for SLP Company The SLP Company I selected was Comcast. I logged onto the yahoo finance website and searched for Comcast Corporation and obtained a beta of 1.18. I then used the equation given in the instructions and plugged in the given numbers to be Rj = 3 + 1.18(7). I first multiplied 1.18 and 7 to get 8.26. I then added 3 to this amount. The final ratio of return for Comcast was 11.26 percent. This amount seems very high for an investment. In fact, when considering the average amount that a portfolio places into a Fortune 500 company, it is very high. In fact, to put it in numbers, it means that if $1,000 worth of shares was purchased, the holder would receive on average $112.60 worth of return each year. As long as the company was consistently releasing shareholder amounts, then the return could add up quickly. I would imagine Comcast Corporation is roughly that amount if not higher given that the company owns very expensive capital including satellites and satellite towers. The first company I researched for comparison is AT&T. AT&T had a beta of .55. I was surprised how much lower the beta for AT&T was compared with Comcast Corporation given that AT&T seems to be a larger company with more capital. The second comparison company I looked up was Sprint. Sprint had a beta of .13. Once again, I was surprised how much smaller Sprint's beta was compared to the other two. AT&T had a beta of .55. In order to find the rate of return of AT&T I used

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