Paying users zone. Data is covered by hidden.

  • Get to Costco Wholesale Corp. for $17.99, or

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

Microsoft Excel LibreOffice Calc


Capital Asset Pricing Model (CAPM)

Difficulty: Intermediate


Rates of Return

Costco Wholesale Corp., monthly rates of return

Microsoft Excel LibreOffice Calc
Costco Wholesale Corp. (COST) Standard & Poor's 500 (S&P 500)
t Date PriceCOST,t1 DividendCOST,t1 RCOST,t2 PriceS&P 500,t RS&P 500,t3
Sep 30, 2011 hidden hidden
1. Oct 31, 2011 hidden hidden% hidden hidden%
2. Nov 30, 2011 hidden hidden hidden% hidden hidden%
3. Dec 31, 2011 hidden hidden% hidden hidden%
. . . . . . .
. . . . . . .
. . . . . . .
70. Jul 31, 2017 hidden hidden% hidden hidden%
71. Aug 31, 2017 hidden hidden hidden% hidden hidden%
Average: hidden% hidden%
Standard Deviation: hidden% hidden%
Costco Wholesale Corp. (COST) Standard & Poor's 500 (S&P 500)
t Date PriceCOST,t1 DividendCOST,t1 RCOST,t2 PriceS&P 500,t RS&P 500,t3
Sep 30, 2011 hidden hidden
1. Oct 31, 2011 hidden hidden% hidden hidden%
2. Nov 30, 2011 hidden hidden hidden% hidden hidden%
3. Dec 31, 2011 hidden hidden% hidden hidden%
4. Jan 31, 2012 hidden hidden% hidden hidden%
5. Feb 29, 2012 hidden hidden hidden% hidden hidden%
6. Mar 31, 2012 hidden hidden% hidden hidden%
7. Apr 30, 2012 hidden hidden% hidden hidden%
8. May 31, 2012 hidden hidden hidden% hidden hidden%
9. Jun 30, 2012 hidden hidden% hidden hidden%
10. Jul 31, 2012 hidden hidden% hidden hidden%
11. Aug 31, 2012 hidden hidden hidden% hidden hidden%
12. Sep 30, 2012 hidden hidden% hidden hidden%
13. Oct 31, 2012 hidden hidden% hidden hidden%
14. Nov 30, 2012 hidden hidden hidden% hidden hidden%
15. Dec 31, 2012 hidden hidden hidden% hidden hidden%
16. Jan 31, 2013 hidden hidden% hidden hidden%
17. Feb 28, 2013 hidden hidden hidden% hidden hidden%
18. Mar 31, 2013 hidden hidden% hidden hidden%
19. Apr 30, 2013 hidden hidden% hidden hidden%
20. May 31, 2013 hidden hidden hidden% hidden hidden%
21. Jun 30, 2013 hidden hidden% hidden hidden%
22. Jul 31, 2013 hidden hidden% hidden hidden%
23. Aug 31, 2013 hidden hidden hidden% hidden hidden%
24. Sep 30, 2013 hidden hidden% hidden hidden%
25. Oct 31, 2013 hidden hidden% hidden hidden%
26. Nov 30, 2013 hidden hidden hidden% hidden hidden%
27. Dec 31, 2013 hidden hidden% hidden hidden%
28. Jan 31, 2014 hidden hidden% hidden hidden%
29. Feb 28, 2014 hidden hidden hidden% hidden hidden%
30. Mar 31, 2014 hidden hidden% hidden hidden%
31. Apr 30, 2014 hidden hidden% hidden hidden%
32. May 31, 2014 hidden hidden hidden% hidden hidden%
33. Jun 30, 2014 hidden hidden% hidden hidden%
34. Jul 31, 2014 hidden hidden hidden% hidden hidden%
35. Aug 31, 2014 hidden hidden% hidden hidden%
36. Sep 30, 2014 hidden hidden% hidden hidden%
37. Oct 31, 2014 hidden hidden% hidden hidden%
38. Nov 30, 2014 hidden hidden hidden% hidden hidden%
39. Dec 31, 2014 hidden hidden% hidden hidden%
40. Jan 31, 2015 hidden hidden% hidden hidden%
41. Feb 28, 2015 hidden hidden hidden% hidden hidden%
42. Mar 31, 2015 hidden hidden% hidden hidden%
43. Apr 30, 2015 hidden hidden hidden% hidden hidden%
44. May 31, 2015 hidden hidden% hidden hidden%
45. Jun 30, 2015 hidden hidden% hidden hidden%
46. Jul 31, 2015 hidden hidden% hidden hidden%
47. Aug 31, 2015 hidden hidden hidden% hidden hidden%
48. Sep 30, 2015 hidden hidden% hidden hidden%
49. Oct 31, 2015 hidden hidden% hidden hidden%
50. Nov 30, 2015 hidden hidden hidden% hidden hidden%
51. Dec 31, 2015 hidden hidden% hidden hidden%
52. Jan 31, 2016 hidden hidden% hidden hidden%
53. Feb 29, 2016 hidden hidden hidden% hidden hidden%
54. Mar 31, 2016 hidden hidden% hidden hidden%
55. Apr 30, 2016 hidden hidden hidden% hidden hidden%
56. May 31, 2016 hidden hidden% hidden hidden%
57. Jun 30, 2016 hidden hidden% hidden hidden%
58. Jul 31, 2016 hidden hidden% hidden hidden%
59. Aug 31, 2016 hidden hidden hidden% hidden hidden%
60. Sep 30, 2016 hidden hidden% hidden hidden%
61. Oct 31, 2016 hidden hidden% hidden hidden%
62. Nov 30, 2016 hidden hidden hidden% hidden hidden%
63. Dec 31, 2016 hidden hidden% hidden hidden%
64. Jan 31, 2017 hidden hidden% hidden hidden%
65. Feb 28, 2017 hidden hidden hidden% hidden hidden%
66. Mar 31, 2017 hidden hidden% hidden hidden%
67. Apr 30, 2017 hidden hidden% hidden hidden%
68. May 31, 2017 hidden hidden hidden% hidden hidden%
69. Jun 30, 2017 hidden hidden% hidden hidden%
70. Jul 31, 2017 hidden hidden% hidden hidden%
71. Aug 31, 2017 hidden hidden hidden% hidden hidden%
Average: hidden% hidden%
Standard Deviation: hidden% hidden%

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 COST during period t

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


Systematic Risk (β) Estimation

Microsoft Excel LibreOffice Calc
VarianceCOST hidden
VarianceS&P 500 hidden
CovarianceCOST, S&P 500 hidden
Correlation CoefficientCOST, S&P 5001 hidden
βCOST2 hidden
αCOST3 hidden

Calculations

1 CovarianceCOST, S&P 500 ÷ (Standard DeviationCOST × Standard DeviationS&P 500)
= hidden ÷ (hidden × hidden)

2 CovarianceCOST, S&P 500 ÷ VarianceS&P 500
= hidden ÷ hidden

3 AverageCOST – βCOST × AverageS&P 500
= hiddenhidden × hidden


Expected Rate of Return

Microsoft Excel LibreOffice Calc
Assumptions
Rate of return on LT Treasury Composite1 RF hidden%
Expected rate of return on market portfolio2 E(RM) hidden%
Systematic risk (β) of Costco's common stock βCOST hidden
Expected rate of return on Costco's common stock3 E(RCOST) hidden%

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(RCOST) = RF + βCOST [E(RM) – RF]
= hidden% + hidden [hidden% – hidden%]
= hidden%