Date S&P 500 CSCO Jun-02 911.62 13.19 Jul-02 916.07 13.82 Aug-02 815.28 10.48 Sep-02 885.76 11.18 Oct-02 936.31 14.92 Nov-02 879.82 13.10 Dec-02 855.70 13.37 Jan-03 841.15 13.98 Feb-03 848.18 12.98 Mar-03 916.92 15.00 Apr-03 963.59 16.41 May-03 974.50 16.79 Jun-03 990.31 19.49 Jul-03 1008.01 19.14 Aug-03 995.97 19.59 Sep-03 1050.71 20.93 Oct-03 1058.20 22.70 Nov-03 1111.92 24.23 Dec-03 1131.13 25.71 Jan-04 1144.94 23.16 Feb-04 1126.21 23.57 Mar-04 1107.30 20.91 Apr-04 1120.68 22.37 May-04 1140.84 23.70 Jun-04 1101.72 20.92 Jul-04 1104.24 18.76 Aug-04 1114.58 18.10 Sep-04 1130.20 19.21 Oct-04 1173.82 18.75 Nov-04 1211.92 19.32 Dec-04 1181.27 18.04 Jan-05 1203.60 17.42 Feb-05 1180.59 17.89 Mar-05 1156.85 17.27 Apr-05 1191.50 19.40 May-05 1191.33 19.08 Jun-05 1234.18 19.15 Jul-05 1220.33 17.62 Aug-05 1228.81 17.92 Sep-05 1207.01 17.45 Oct-05 1249.48 17.54 Nov-05 1248.29 17.12 Dec-05 1280.08 18.57 Jan-06 1280.66 20.24 Feb-06 1294.87 21.67 Mar-06 1310.61 20.95 Apr-06 1270.09 19.68 May-06 1270.20 19.53 Jun-06 1276.66 17.88 Jul-06 1303.82 21.99 Aug-06 1335.85 22.98 Sep-06 1377.94 24.13 Oct-06 1400.63 26.91 Nov-06 1418.30 27.33 Dec-06 1438.24 26.62 Jan-07 1406.82 25.94 Feb-07 1420.86 25.53 Mar-07 1482.37 26.74 Apr-07 1530.62 26.92 May-07 1502.97 27.85 Jun-07 1519.43 27.89 Find the continuously compounded (log) returns for both the S&P 500 and CSCO. Put yourwork in columns F and G. 2) Use the slope function to find the beta for CSCO. Perform your work in the box below. Don't worry about subtracting a monthly risk-free rate. 3) Create a scatter plot of CSCO (y-axis) and S&P 500 (x-axis). Add a linear trend line. Give your graph a reasonable title and axis labels. Do not show any decimal places (e.g. 20%, not 20.00%). 4) If the 10-year Treasury is yielding 2.90% and the equity risk premium is 5.5%, what is the CAPM cost of equity for CSCO? Perform your work in the box below.
Date S&P 500 CSCO Jun-02 911.62 13.19 Jul-02 916.07 13.82 Aug-02 815.28 10.48 Sep-02 885.76 11.18 Oct-02 936.31 14.92 Nov-02 879.82 13.10 Dec-02 855.70 13.37 Jan-03 841.15 13.98 Feb-03 848.18 12.98 Mar-03 916.92 15.00 Apr-03 963.59 16.41 May-03 974.50 16.79 Jun-03 990.31 19.49 Jul-03 1008.01 19.14 Aug-03 995.97 19.59 Sep-03 1050.71 20.93 Oct-03 1058.20 22.70 Nov-03 1111.92 24.23 Dec-03 1131.13 25.71 Jan-04 1144.94 23.16 Feb-04 1126.21 23.57 Mar-04 1107.30 20.91 Apr-04 1120.68 22.37 May-04 1140.84 23.70 Jun-04 1101.72 20.92 Jul-04 1104.24 18.76 Aug-04 1114.58 18.10 Sep-04 1130.20 19.21 Oct-04 1173.82 18.75 Nov-04 1211.92 19.32 Dec-04 1181.27 18.04 Jan-05 1203.60 17.42 Feb-05 1180.59 17.89 Mar-05 1156.85 17.27 Apr-05 1191.50 19.40 May-05 1191.33 19.08 Jun-05 1234.18 19.15 Jul-05 1220.33 17.62 Aug-05 1228.81 17.92 Sep-05 1207.01 17.45 Oct-05 1249.48 17.54 Nov-05 1248.29 17.12 Dec-05 1280.08 18.57 Jan-06 1280.66 20.24 Feb-06 1294.87 21.67 Mar-06 1310.61 20.95 Apr-06 1270.09 19.68 May-06 1270.20 19.53 Jun-06 1276.66 17.88 Jul-06 1303.82 21.99 Aug-06 1335.85 22.98 Sep-06 1377.94 24.13 Oct-06 1400.63 26.91 Nov-06 1418.30 27.33 Dec-06 1438.24 26.62 Jan-07 1406.82 25.94 Feb-07 1420.86 25.53 Mar-07 1482.37 26.74 Apr-07 1530.62 26.92 May-07 1502.97 27.85 Jun-07 1519.43 27.89 Find the continuously compounded (log) returns for both the S&P 500 and CSCO. Put yourwork in columns F and G. 2) Use the slope function to find the beta for CSCO. Perform your work in the box below. Don't worry about subtracting a monthly risk-free rate. 3) Create a scatter plot of CSCO (y-axis) and S&P 500 (x-axis). Add a linear trend line. Give your graph a reasonable title and axis labels. Do not show any decimal places (e.g. 20%, not 20.00%). 4) If the 10-year Treasury is yielding 2.90% and the equity risk premium is 5.5%, what is the CAPM cost of equity for CSCO? Perform your work in the box below.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
| Date | S&P 500 | CSCO |
| Jun-02 | 911.62 | 13.19 |
| Jul-02 | 916.07 | 13.82 |
| Aug-02 | 815.28 | 10.48 |
| Sep-02 | 885.76 | 11.18 |
| Oct-02 | 936.31 | 14.92 |
| Nov-02 | 879.82 | 13.10 |
| Dec-02 | 855.70 | 13.37 |
| Jan-03 | 841.15 | 13.98 |
| Feb-03 | 848.18 | 12.98 |
| Mar-03 | 916.92 | 15.00 |
| Apr-03 | 963.59 | 16.41 |
| May-03 | 974.50 | 16.79 |
| Jun-03 | 990.31 | 19.49 |
| Jul-03 | 1008.01 | 19.14 |
| Aug-03 | 995.97 | 19.59 |
| Sep-03 | 1050.71 | 20.93 |
| Oct-03 | 1058.20 | 22.70 |
| Nov-03 | 1111.92 | 24.23 |
| Dec-03 | 1131.13 | 25.71 |
| Jan-04 | 1144.94 | 23.16 |
| Feb-04 | 1126.21 | 23.57 |
| Mar-04 | 1107.30 | 20.91 |
| Apr-04 | 1120.68 | 22.37 |
| May-04 | 1140.84 | 23.70 |
| Jun-04 | 1101.72 | 20.92 |
| Jul-04 | 1104.24 | 18.76 |
| Aug-04 | 1114.58 | 18.10 |
| Sep-04 | 1130.20 | 19.21 |
| Oct-04 | 1173.82 | 18.75 |
| Nov-04 | 1211.92 | 19.32 |
| Dec-04 | 1181.27 | 18.04 |
| Jan-05 | 1203.60 | 17.42 |
| Feb-05 | 1180.59 | 17.89 |
| Mar-05 | 1156.85 | 17.27 |
| Apr-05 | 1191.50 | 19.40 |
| May-05 | 1191.33 | 19.08 |
| Jun-05 | 1234.18 | 19.15 |
| Jul-05 | 1220.33 | 17.62 |
| Aug-05 | 1228.81 | 17.92 |
| Sep-05 | 1207.01 | 17.45 |
| Oct-05 | 1249.48 | 17.54 |
| Nov-05 | 1248.29 | 17.12 |
| Dec-05 | 1280.08 | 18.57 |
| Jan-06 | 1280.66 | 20.24 |
| Feb-06 | 1294.87 | 21.67 |
| Mar-06 | 1310.61 | 20.95 |
| Apr-06 | 1270.09 | 19.68 |
| May-06 | 1270.20 | 19.53 |
| Jun-06 | 1276.66 | 17.88 |
| Jul-06 | 1303.82 | 21.99 |
| Aug-06 | 1335.85 | 22.98 |
| Sep-06 | 1377.94 | 24.13 |
| Oct-06 | 1400.63 | 26.91 |
| Nov-06 | 1418.30 | 27.33 |
| Dec-06 | 1438.24 | 26.62 |
| Jan-07 | 1406.82 | 25.94 |
| Feb-07 | 1420.86 | 25.53 |
| Mar-07 | 1482.37 | 26.74 |
| Apr-07 | 1530.62 | 26.92 |
| May-07 | 1502.97 | 27.85 |
| Jun-07 | 1519.43 | 27.89 |
Find the continuously compounded (log) returns for both the S&P 500 and CSCO. Put yourwork in columns F and G.
2) Use the slope function to find the beta for CSCO. Perform your work in the box below. Don't worry about subtracting a monthly risk-free rate.
3) Create a scatter plot of CSCO (y-axis) and S&P 500 (x-axis). Add a linear trend line. Give your graph a reasonable title and axis labels. Do not show any decimal places (e.g. 20%, not 20.00%).
4) If the 10-year Treasury is yielding 2.90% and the equity risk premium is 5.5%, what is the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 10 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education