Paying users zone. Data is covered by .

  • Get to Booking Holdings Inc. for $17.99, or

  • get to whole website for at least 3 months from $49.99.

 

$17.99

Capital Asset Pricing Model (CAPM)

Difficulty: Intermediate

Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Booking Holdings's common stock.


Rates of Return

Booking Holdings Inc., monthly rates of return

 
Booking Holdings Inc. (BKNG) Standard & Poor's 500 (S&P 500)
t Date PriceBKNG,t1 DividendBKNG,t1 RBKNG,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2013
1. Feb 28, 2013 % %
2. Mar 31, 2013 % %
3. Apr 30, 2013 % %
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2017 % %
59. Dec 31, 2017 % %
Average: % %
Standard Deviation: % %
Booking Holdings Inc. (BKNG) Standard & Poor's 500 (S&P 500)
t Date PriceBKNG,t1 DividendBKNG,t1 RBKNG,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2013
1. Feb 28, 2013 % %
2. Mar 31, 2013 % %
3. Apr 30, 2013 % %
4. May 31, 2013 % %
5. Jun 30, 2013 % %
6. Jul 31, 2013 % %
7. Aug 31, 2013 % %
8. Sep 30, 2013 % %
9. Oct 31, 2013 % %
10. Nov 30, 2013 % %
11. Dec 31, 2013 % %
12. Jan 31, 2014 % %
13. Feb 28, 2014 % %
14. Mar 31, 2014 % %
15. Apr 30, 2014 % %
16. May 31, 2014 % %
17. Jun 30, 2014 % %
18. Jul 31, 2014 % %
19. Aug 31, 2014 % %
20. Sep 30, 2014 % %
21. Oct 31, 2014 % %
22. Nov 30, 2014 % %
23. Dec 31, 2014 % %
24. Jan 31, 2015 % %
25. Feb 28, 2015 % %
26. Mar 31, 2015 % %
27. Apr 30, 2015 % %
28. May 31, 2015 % %
29. Jun 30, 2015 % %
30. Jul 31, 2015 % %
31. Aug 31, 2015 % %
32. Sep 30, 2015 % %
33. Oct 31, 2015 % %
34. Nov 30, 2015 % %
35. Dec 31, 2015 % %
36. Jan 31, 2016 % %
37. Feb 29, 2016 % %
38. Mar 31, 2016 % %
39. Apr 30, 2016 % %
40. May 31, 2016 % %
41. Jun 30, 2016 % %
42. Jul 31, 2016 % %
43. Aug 31, 2016 % %
44. Sep 30, 2016 % %
45. Oct 31, 2016 % %
46. Nov 30, 2016 % %
47. Dec 31, 2016 % %
48. Jan 31, 2017 % %
49. Feb 28, 2017 % %
50. Mar 31, 2017 % %
51. Apr 30, 2017 % %
52. May 31, 2017 % %
53. Jun 30, 2017 % %
54. Jul 31, 2017 % %
55. Aug 31, 2017 % %
56. Sep 30, 2017 % %
57. Oct 31, 2017 % %
58. Nov 30, 2017 % %
59. Dec 31, 2017 % %
Average: % %
Standard Deviation: % %

Show All

1 Data in USD $ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of BKNG during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t

Top


Systematic Risk (β) Estimation

 
VarianceBKNG
VarianceS&P 500
CovarianceBKNG, S&P 500
Correlation CoefficientBKNG, S&P 5001
βBKNG2
αBKNG3

Calculations

1 CovarianceBKNG, S&P 500 ÷ (Standard DeviationBKNG × Standard DeviationS&P 500)
= ÷ ( × )

2 CovarianceBKNG, S&P 500 ÷ VarianceS&P 500
= ÷

3 AverageBKNG – βBKNG × AverageS&P 500
= ×

Top


Expected Rate of Return

 
Assumptions
Rate of return on LT Treasury Composite1 RF %
Expected rate of return on market portfolio2 E(RM) %
Systematic risk (β) of Booking Holdings's common stock βBKNG
Expected rate of return on Booking Holdings's common stock3 E(RBKNG) %

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

Calculations

2 See Details »

3 E(RBKNG) = RF + βBKNG [E(RM) – RF]
= % + [% – %]
= %

Top