Paying users zone. Data is covered by .

  • Get to Boeing Co. for $19.99, or

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

 

$19.99

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 Boeing's common stock.


Rates of Return

Boeing Co., monthly rates of return

 
Boeing Co. (BA) Standard & Poor's 500 (S&P 500)
t Date PriceBA,t1 DividendBA,t1 RBA,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: % %
Boeing Co. (BA) Standard & Poor's 500 (S&P 500)
t Date PriceBA,t1 DividendBA,t1 RBA,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 BA during period t

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

Top


Systematic Risk (β) Estimation

 
VarianceBA
VarianceS&P 500
CovarianceBA, S&P 500
Correlation CoefficientBA, S&P 5001
βBA2
αBA3

Calculations

1 CovarianceBA, S&P 500 ÷ (Standard DeviationBA × Standard DeviationS&P 500)
= ÷ ( × )

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

3 AverageBA – βBA × 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 Boeing's common stock βBA
Expected rate of return on Boeing's common stock3 E(RBA) %

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(RBA) = RF + βBA [E(RM) – RF]
= % + [% – %]
= %

Top