In this assignment you will learn how to calculate risk and return and how to interpret the results. The focus of this assignment is the Capital Asset Pricing Model (CAPM). After completing the assignment you will be able to apply the CAPM to any stock or portfolio valuation understand the concept of the beta of a stock and understand a portfolio.
Instructions
Answer the following questions and complete the following problems as applicable:
You may solve the following problems algebraically or you may use a financial calculator or Excel spreadsheet. If you choose to solve the problems algebraically be sure to show your computations. If you use a financial calculator show your input values. If you use an Excel spreadsheet show your input values and formulas.
Note:In addition to your solution to each computational problem you must show the supporting work leading to your solution to receive credit for your answer.
Fast Growth0.3040%
Slow Growth0.4010%
Recession0.3025%
Submit your completed assignment as an attachment in the assignment area. You may use either a Word document or an Excel spreadsheet for your work but not both. Prior to submitting your assignment review the Estimating Risk and Return Scoring Guide to ensure you have met all of the requirements and as a self-assessment of your work.