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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Mathematics Homework Solutions
#39001
Calculate measure of risk for a company
The CFO has requested from me a risk assessment of SM Company. Think about the risks inherent in SM and how to quantify these risks. Data provided below 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 calculatin is appropriate, and when the coefficient of variation is an appropriate measure of risk.
Please see attached.
The solution calculates beta using regression equation and discusses why beta is an appropriate measure of risk
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- 39001-maths-CAPM and risk.xls
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