Question
In: Finance
Calculate Beta for Apple and Microsoft, using a characteristic line. Display the data points on a...
- Calculate Beta for Apple and Microsoft, using a characteristic
line. Display the data points on a graph and display the
characteristic line.
Yearly Returns Microsoft Apple Market Jan 2010 - Dec 2010 Year. 1 -0.34% 5.18% 14.93% Jan 2011 - Dec 2011 Year. 2 -0.37% 7.93% 2.06% Jan 2012 - Dec 2012 Year. 3 0.40% 5.15% 15.84% Jan 2013 - Dec 2013 Year 4 2.81% 5.99% 32.21% Jan 2014 - Dec 2014 Year. 5 1.91% 4.62% 13.53% Jan 2015 - Dec 2015 Year. 6 1.75% 3.32% 1.34% Jan 2016 - Dec 2016 Year. 7 1.37% 3.94% 11.80% Jan 2017 - Dec 2017 Year. 8 2.72% 2.84% 21.69% Jan 2018 - Dec 2018 Year. 9 1.41% 2.13% -4.45% Jan 2019 - Dec 2019 Year. 10 4.06% 5.58% 31.29% Average Return 1.57% 4.67% 14.02% Std Deviation 1.42% 1.69% 12.21% Correlation with the market 0.61 0.29 1.00 Beta 0.07 0.04 1.00
Solutions
Expert Solution
y = 0.04x + 0.0411
Coefficient of x is 0.04, which is Apple's Beta.
y = 0.0705x + 0.0058
Coefficient of x is 0.0705, which is Microsoft's Beta.
Equations are in the graphs as well.
jeff jeffy answered 2 years agoRelated Solutions
Calculate Beta for Apple and Microsoft, using a characteristic line. Display the data points on a...
Calculate Beta for Apple and Microsoft, using a characteristic
line. Display the data points on a graph and display the
characteristic line.
Year
Microsoft
Apple
Market
Jan 2010 - Dec 2010
1
-0.34%
3.85%
14.93%
Jan 2011 - Dec 2011
2
-0.37%
2.09%
2.06%
Jan 2012 - Dec 2012
3
0.40%
2.87%
15.84%
Jan 2013 - Dec 2013
4
2.81%
0.38%
32.21%
Jan 2014 - Dec 2014
5
1.91%
3.05%
13.53%
Jan 2015 - Dec 2015
6
1.75%
-0.45%
1.34%...
Using CAPM, calculate the Expected Return for Apple and Microsoft. Get the relevant market related data,...
Using CAPM, calculate the Expected Return for Apple and
Microsoft. Get the relevant market related data, such as the
“risk-free rate” and “market return”, and describe which rate you
are using from the financial markets
Year
Microsoft
Apple
Market
Jan 2010 - Dec 2010
1
-0.34%
5.18%
14.93%
Jan 2011 - Dec 2011
2
-0.37%
7.93%
2.06%
Jan 2012 - Dec 2012
3
0.40%
5.15%
15.84%
Jan 2013 - Dec 2013
4
2.81%
5.99%
32.21%
Jan 2014 - Dec 2014...
We can calculate beta as the slope of the SCL(Security Characteristic Line) or as cov(ri, rM)/sM2....
We can calculate beta as the slope of the SCL(Security
Characteristic Line) or as cov(ri, rM)/sM2. Which way is better and
why?
beta numbers (1.1 for Apple and 0.8 for Microsoft), would you give me the "fake" return...
beta numbers (1.1 for Apple and 0.8 for Microsoft), would you
give me the "fake" return values for these stocks. And using those
return values, would you please calculate the "fake" Portfolio
Return.
Amt Invested
Portfolio Weights
Expected Portfolio Return
Total Portfolio Value
Portfolio Beta
Microsoft
$333,000.00
0.33
1.60%
0.8
Apple
$670,000.00
0.67
1.90%
1.1
Both
$1,000,000.00
Yearly Stock Return
Year
Market
Microsoft
Apple
1
14.93%
-0.34%
3.86%
2
2.06%
-0.37%
2.09%
3
15.84%
0.40%
2.87%
4
32.21%
2.81%
0.38%...
For the following data (a) display the data in a scatter plot, (b) calculate the correlation...
For the following data (a) display the data in a scatter plot,
(b) calculate the correlation coefficient r, and (c) make a
conclusion about the type of correlation. The ages (in years) of 6
children and the number of words in their vocabulary Age, x 1 2 3
4 5 6
Vocabulary size, y 150 1100 1150 1800 2050 2700
A] The correlation coefficient r is
The Bobs want to know if Apple computers are better than Microsoft. Corporations using the Bobs...
The Bobs want to know if Apple computers are better than
Microsoft. Corporations using the Bobs consulting agency are
surveyed for their employees’ use of Apple versus Microsoft
computers and their level of productivity. The data is summarized
below. Use α = .01.
** I need to see work for FULL points. Please show your work on
scrap paper!!**
Productivity
Apple
Microsoft
Total
Bad
66
23
89
Average
62
74
136
Great
71
15
86
Total
199
112
311
What...
Characteristic Line and Security Market Line You are given the following set of data: HISTORICAL RATES...
Characteristic Line and Security Market Line
You are given the following set of data:
HISTORICAL RATES OF RETURN
Year
NYSE
Stock
X
1
- 26.5%
- 17.0%
2
37.2
16.0
3
23.8
14.0
4
- 7.2
5.0
5
6.6
9.9
6
20.5
19.4
7
30.6
17.9
Use a spreadsheet (or a calculator with a linear regression
function) to determine Stock X's beta coefficient. Round your
answer to two decimal places.
Beta =
Determine the arithmetic average rates of return for...
showing your work, use the 2018-2019 10k from apple and microsoft to calculate the average days...
showing your work, use the 2018-2019 10k from apple and
microsoft to calculate the average days to collect as well as
inventory turnover ratio.
file:///C:/Users/chase/Downloads/Apple%2010-K%20for%202018.pdf
file:///C:/Users/chase/Downloads/Microsoft%2010-K%20for%202019.pdf
Use the following data to explore the risk-return relation and the concept of beta for Apple...
Use the following data to explore the risk-return relation and
the concept of beta for Apple stock, Alphabet (Google) stock, and
the S&P 500 market index:
Year
Apple Stock Price
Alphabet Stock Price
S&P 500 Market Index
2017
$174.09
$1,072.01
2,601.42
2016
$115.82
$807.80
2,238.83
2015
$105.26
$765.84
2,043.94
2014
$113.99
$521.51
2,058.90
2013
$80.01
$559.76
1,848.36
2012
$72.80
$358.17
1,426.19
Market risk premium: RPM =
4.01%
Risk-free
rate: rRF =
1.30%
Calculate the portfolio beta of the four-stock portfolio...
Use the following data to explore the risk-return relation and the concept of beta for Apple...
Use the following data to explore the risk-return relation and
the concept of beta for Apple stock, Alphabet (Google) stock, and
the S&P 500 market index:
Year
Apple Stock Price
Alphabet Stock Price
S&P 500 Market Index
2017
$174.09
$1,072.01
2,601.42
2016
$115.82
$807.80
2,238.83
2015
$105.26
$765.84
2,043.94
2014
$113.99
$521.51
2,058.90
2013
$80.01
$559.76
1,848.36
2012
$72.80
$358.17
1,426.19
E) Calculate the expected return on the market according to:
Expected Return on Market = Risk-Free Rate + Market...
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