calculating the expected return of an asset for your  company.

using walmart as the company and in 250 to 300 words

 

CAPM says that the expected return of an asset or a portfolio is the  rate on a risk-free security plus a risk premium. For this discussion,  you will practice calculating the expected return of an asset for your  company.

Here is the recap of the model:

You can find the beta for your company in Yahoo! Finance (look up  your company and go to Key Statistics) or Google Finance. Or calculate  your own. See this article: 

Calculate Stock Beta with Excel 

For the risk-free rate, look up the Treasury bill interest rate  (select what you think is the appropriate rate) and the risk premium (do  some research; start with the most recent Ibbotson Associates report on  market premium).

For this post, 1) list your company, 2) company beta, 3) your  risk-free rate, and 4) the risk premium rate. Explain your reasoning for  selecting the values of your risk-free rate and the market premium. Is  your calculated expected return value reasonable for your company?