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- me
Guest
im doing a project on toyota and i have to calculate the beta of the stock
i have the liberty of using whatever time period i want, so i went and used the 1 year treasury yield rate today which is 1.44, and the s&p expected market return which is 5.49.
in CAPM, we have
expected rate of return = r = rf + b(rm-rf)
so what do i use for r? since the teacher gives us the liberty of using whatever numbers we want when it comes to these decisions, can i just say i want to use 10% and go with that?
and if i do use that and calculate it, i can find B, but that hasn't taken any consideration of toyota's stock, so how do i implement that?
thank you!
i have the liberty of using whatever time period i want, so i went and used the 1 year treasury yield rate today which is 1.44, and the s&p expected market return which is 5.49.
in CAPM, we have
expected rate of return = r = rf + b(rm-rf)
so what do i use for r? since the teacher gives us the liberty of using whatever numbers we want when it comes to these decisions, can i just say i want to use 10% and go with that?
and if i do use that and calculate it, i can find B, but that hasn't taken any consideration of toyota's stock, so how do i implement that?
thank you!