Business Homework Solutions
Problem
#48219

Calculate beta to assess the risks inherent in Strident Marks

The CFO has requested from you, a risk assessment of Strident Marks. Think about the risks inherent in Strident Marks and how to quantify these risks. Download the data provided and calculate the measure of risk for this company (defined as Beta in the Capital Asset Pricing Model - CAPM) and explain why this calculation is a measure of risk. Discuss when this type of calculation is appropriate, and when the coefficient of variation is an appropriate measure of risk.

Attached is the raw data. I will write the paper. I need the calculation done, and an explanation of the type of calculation and why it is a measure of risk. No need to be too lengthy on the explanation. I will do the research later.
Thanks in advance

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11021 Q ACC.pdf
FIN310 Financial Management Principles
Assignments




Raw Data Stock of ABC Market
Total Excess Total Excess
Period Return Return Return Return
1 17.0% 10.8% 15.0% 8.8%
2 18.0% 11.8% 16.5% 10.3%
3 18.5% 12.3% 17.0% 10.8%
4 17.5% 11.3% 16.5% 10.3%
5 17.0% 10.8% 16.0% 9.8%
6 16.5% 10.3% 16.8% 10.6%
7 17.0% 10.8% 16.0% 9.8%
8 16.0% 9.8% 15.3% 9.1%
9 15.5% 9.3% 14.5% 8.3%
10 16.0% 9.8% 15.3% 9.1%
11 17.0% 10.8% 16.0% 9.8%
12 17.1% 10.9% 16.1% 9.9%
13 18.1% 11.9% 16.9% 10.7%
14 18.6% 12.4% 17.6% 11.4%
15 17.6% 11.4% 16.9% 10.7%
16 17.1% 10.9% 16.1% 9.9%
17 16.6% 10.4% 16.9% 10.7%
18 17.1% 10.9% 16.1% 9.9%
19 16.1% 9.9% 15.4% 9.2%
20 15.6% 9.4% 14.6% 8.4%
21 16.1% 9.9% 15.4% 9.2%
22 17.1% 10.9% 16.1% 9.9%
23 15.0% 8.8% 15.0% 8.8%
24 16.0% 9.8% 15.8% 9.6%
25 16.5% 10.3% 16.5% 10.3%
26 15.5% 9.3% 15.8% 9.6%
27 15.0% 8.8% 15.0% 8.8%
28 14.5% 8.3% 15.8% 9.6%
29 15.0% 8.8% 15.0% 8.8%
30 14.0% 7.8% 14.3% 8.1%
31 13.5% 7.3% 13.5% 7.3%
32 14.0% 7.8% 14.3% 8.1%
33 15.0% 8.8% 15.0% 8.8%
34 15.0% 8.8% 15.0% 8.8%
35 16.0% 9.8% 15.8% 9.6%
36 16.5% 10.3% 16.5% 10.3%
37 15.5% 9.3% 15.8% 9.6%
38 15.0% 8.8% 15.0% 8.8%
39 14.5% 8.3% 15.8% 9.6%
40 15.0% 8.8% 15.0% 8.8%
41 14.0% 7.8% 14.3% 8.1%
42 13.5% 7.3% 13.5% 7.3%
43 14.0% 7.8% 14.3% 8.1%
44 15.0% 8.8% 15.0% 8.8%
45 15.0% 8.8% 15.0% 8.8%
46 16.0% 9.8% 15.8% 9.6%
47 16.5% 10.3% 16.5% 10.3%
48 15.5% 9.3% 15.8% 9.6%
49 15.0% 8.8% 15.0% 8.8%
50 14.5% 8.3% 15.8% 9.6%
51 15.0% 8.8% 15.0% 8.8%
52 14.0% 7.8% 14.3% 8.1%
53 13.5% 7.3% 13.5% 7.3%
54 14.0% 7.8% 14.3% 8.1%
55 15.0% 8.8% 15.0% 8.8%
56 15.0% 8.8% 15.0% 8.8%
57 16.0% 9.8% 15.8% 9.6%
58 16.5% 10.3% 16.5% 10.3%
59 15.5% 9.3% 15.8% 9.6%
60 15.0% 8.8% 15.0% 8.8%
9.52% 9.26%



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Solution Summary

The solution calculates the beta from raw data using regression and provides easy to understand interpretation of the regression. It provides steps how we can make use of Excel software to run regression to caculate the beta for a stock.

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