Historical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market index S&P500 over the same periods were -15% and 28%. Calculate the beta for Coca-cola.
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Historical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market index S&P500 over the same periods were -15% and 28%. Calculate the beta for Coca-cola.
Can you do this with Excel and without Excel (using formulae please) corresponding to the formula attached.
The other image shows previous answer from an expert but I think the formula used for Beta seems wrong.
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- Historical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market index S&P500 over the same periods were -15% and 28%. Calculate the beta for Coca-cola. Can you do this with Excel and without Excel (using formulae please)Historical nominal returns for Company A have been 8% and -20%. The nominal returns for the market index S&P500 over the same periods were -15% and 28%. Calculate the beta for Company A. Please include equations used. ThanksHistorical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market index S&P500 over the same periods were -15% and 28%. Calculate the beta for Coca-cola. Assume that using the Security Market Line (SML) the required rate of return (RA) on stock A is found to be half of the required return (RB) on stock B. The risk-free rate (Rf) is one-fourth of the required return on A. Return on market portfolio is denoted by RM. Find the ratio of beta of A (A) to beta of B(B)
- Morphosis (Ltd) is a manufacturing company focusing on food production. The company recently paid a dividend of R2,50 per share and plans to increase its dividends by 10% in the first year, 15% in year 2, 20% in year 3 then level off at a constant rate of 5% thereafter. The T-bills are 6,50% and the return on the market is 25%. The standard deviations are 13 and 10 percent for Morphosis and the market respectively. The correlation coefficient between the two is 0,75. Find the intrinsic value of the share using ddm.Morphosis (Ltd) is a manufacturing company focusing on food production. The company recently paid a dividend of $2,50 per share and plans to increase its dividends by 10% in the first year, 15% in year 2, 20% in year 3 then level off at a constant rate of 5% thereafter. The T-bills are 6,50% and the return on the market is 25%. The standard deviations are 13 and 10 percent for Morphosis and the market respectively. The correlation coefficient between the two is 0,75. a) Calculate the risk premium. What does this mean? b) Determine the required rate of return using CAPM c) Find the intrinsic value of the share using the DDM.The returns of Shanfari Company are as follows: Year 1=4, Year 2=11, Year3=21, Year 4= (-3). The Average Return and Standard Deviation of Shanfari Company are Select one: a. Average Return=6.75%, Standard Deviation=7.15 b. Average Return=8.25%, Standard Deviation=6.50 c. Average Return=8.25%, Standard Deviation=8.87 d. None of the options e. Average Return=7.45%, Standard Deviation=8.50
- The returns on the common stock of New Image Products are quite cyclical. In a boom economy, the stock is expected to return 23 percent in comparison to 14 percent in a normal economy and a negative 18 percent in a recessionary period. The probability of a recession is 18 percent while the probability of a boom is 22 percent. What is the standard deviation of the returns on this stock? P/s : Please show the step by step not using calculation via excel sheet. Thank you.At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.3 and the risk-free rate was about 3.6%. Apple's price was $82.38. Apple's price at the end of 2007 was $192.92. If you estimate the market risk premium to have been 6.3%, did Apple's managers exceed their investors' required return as given by the CAPM? The expected return is? (Round percentage to 2 decimal places)Required- Could you answer both of these questions in detail, as I have previously sent these questions, I have got the answers but I dont understand how and where the numbers have come from as for example for part A you multiplied the Second equation by -1 why? for part B the steps were not detailed enough to understand what had been done a) ) Historical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market index S&P500 over the same periods were -15% and 28%. Calculate the beta for Coca-cola. b) Assume that using the Security Market Line (SML) the required rate of return (RA) on stock A is found to be half of the required return (RB) on stock B. The risk-free rate (Rf) is one-fourth of the required return on A. Return on market portfolio is denoted by RM. Find the ratio of beta of A (βA) to beta of B (βB)
- a) Historical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the market index S&P500 over the same periods were -15% and 28%. Calculate the beta for Coca-cola. b) Assume that using the Security Market Line (SML) the required rate of return (RA) on stock A is found to be half of the required return (RB) on stock B. The risk-free rate (Rf) is one-fourth of the required return on A. Return on market portfolio is denoted by RM. Find the ratio of beta of A (A) to beta of B (B). c) Assume that the short-term risk-free rate is 3%, the market index S&P500 is expected to pay returns of 15% with the standard deviation equal to 20%. Asset A pays on average 5%, has standard deviation equal to 20% and is NOT correlated with the S&P500. Asset B pays on average 8%, also has standard deviation equal to 20% and has correlation of 0.5 with the S&P500. Determine whether asset A and B are overvalued or undervalued, and explain why. (Hint: Beta of asset i…If the economy prospers, shares of Fitbit (ticker symbol: FIT) are expected to return 11%. But, if the economy falters, shares of Fitbit are expected to return 4%. According to equity analysts at Bank of America, over the next year, there is a 61% chance of an economic upturn and a 39% likelihood of an economic downturn. Given this information, Fitbit has a variance of returns equal to: a. 0.000273 b. 0.001544 c. 0.033819 d. 0.001166 e. 0.000827A company has a beta of 1.4, the T-bill rate is 2.09%, and the expected return on the market is 9.02%. What is its required rate of return? Do not round your intermediate calculations. Express as a percent rounded to two decimal places.