Dell Technologies Inc. (NYSE:DELL)

Capital Asset Pricing Model (CAPM)

Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Dell Technologies Inc. common stock.

Rates of Return
Variance and Covariance
Systematic Risk (β) Estimation
Expected Rate of Return

Rates of Return

Dell Technologies Inc., monthly rates of return

		Dell Technologies Inc. (DELL)			Standard & Poor’s 500 (S&P 500)
t	Date	Price_DELL,t¹	Dividend_DELL,t¹	R_DELL,t²	Price_{S&P 500,t}	R_{S&P 500,t}³
	Feb 29, 2020	$40.46			2,954.22
1.	Mar 31, 2020	$39.55		-2.25%	2,584.59	-12.51%
2.	Apr 30, 2020	$42.69		7.94%	2,912.43	12.68%
3.	May 31, 2020	$49.64		16.28%	3,044.31	4.53%
.	.	.	.	.	.	.
.	.	.	.	.	.	.
.	.	.	.	.	.	.
70.	Dec 31, 2025	$125.88		-5.60%	6,845.50	-0.05%
71.	Jan 31, 2026	$114.44	$0.525	-8.67%	6,939.03	1.37%
Average (R):				3.02%		1.33%
Standard deviation:				9.54%		4.83%

		Dell Technologies Inc. (DELL)			Standard & Poor’s 500 (S&P 500)
t	Date	Price_DELL,t¹	Dividend_DELL,t¹	R_DELL,t²	Price_{S&P 500,t}	R_{S&P 500,t}³
	Feb 29, 2020	$40.46			2,954.22
1.	Mar 31, 2020	$39.55		-2.25%	2,584.59	-12.51%
2.	Apr 30, 2020	$42.69		7.94%	2,912.43	12.68%
3.	May 31, 2020	$49.64		16.28%	3,044.31	4.53%
4.	Jun 30, 2020	$54.94		10.68%	3,100.29	1.84%
5.	Jul 31, 2020	$59.83		8.90%	3,271.12	5.51%
6.	Aug 31, 2020	$66.08		10.45%	3,500.31	7.01%
7.	Sep 30, 2020	$67.69		2.44%	3,363.00	-3.92%
8.	Oct 31, 2020	$60.26		-10.98%	3,269.96	-2.77%
9.	Nov 30, 2020	$69.03		14.55%	3,621.63	10.75%
10.	Dec 31, 2020	$73.29		6.17%	3,756.07	3.71%
11.	Jan 31, 2021	$72.89		-0.55%	3,714.24	-1.11%
12.	Feb 28, 2021	$81.07		11.22%	3,811.15	2.61%
13.	Mar 31, 2021	$88.15		8.73%	3,972.89	4.24%
14.	Apr 30, 2021	$98.33		11.55%	4,181.17	5.24%
15.	May 31, 2021	$98.64		0.32%	4,204.11	0.55%
16.	Jun 30, 2021	$99.67		1.04%	4,297.50	2.22%
17.	Jul 31, 2021	$96.62		-3.06%	4,395.26	2.27%
18.	Aug 31, 2021	$97.46		0.87%	4,522.68	2.90%
19.	Sep 30, 2021	$104.04		6.75%	4,307.54	-4.76%
20.	Oct 31, 2021	$109.99		5.72%	4,605.38	6.91%
21.	Nov 30, 2021	$56.47	$54.85	1.21%	4,567.00	-0.83%
22.	Dec 31, 2021	$56.17		-0.53%	4,766.18	4.36%
23.	Jan 31, 2022	$56.81		1.14%	4,515.55	-5.26%
24.	Feb 28, 2022	$50.96		-10.30%	4,373.94	-3.14%
25.	Mar 31, 2022	$50.19		-1.51%	4,530.41	3.58%
26.	Apr 30, 2022	$47.01	$0.33	-5.68%	4,131.93	-8.80%
27.	May 31, 2022	$49.94		6.23%	4,132.15	0.01%
28.	Jun 30, 2022	$46.21		-7.47%	3,785.38	-8.39%
29.	Jul 31, 2022	$45.06	$0.33	-1.77%	4,130.29	9.11%
30.	Aug 31, 2022	$38.29		-15.02%	3,955.00	-4.24%
31.	Sep 30, 2022	$34.17		-10.76%	3,585.62	-9.34%
32.	Oct 31, 2022	$38.40	$0.33	13.35%	3,871.98	7.99%
33.	Nov 30, 2022	$44.79		16.64%	4,080.11	5.38%
34.	Dec 31, 2022	$40.22		-10.20%	3,839.50	-5.90%
35.	Jan 31, 2023	$40.62	$0.33	1.82%	4,076.60	6.18%
36.	Feb 28, 2023	$40.64		0.05%	3,970.15	-2.61%
37.	Mar 31, 2023	$40.21		-1.06%	4,109.31	3.51%
38.	Apr 30, 2023	$43.49	$0.37	9.08%	4,169.48	1.46%
39.	May 31, 2023	$44.81		3.04%	4,179.83	0.25%
40.	Jun 30, 2023	$54.11		20.75%	4,376.86	4.71%
41.	Jul 31, 2023	$52.92	$0.37	-1.52%	4,588.96	4.85%
42.	Aug 31, 2023	$56.24		6.27%	4,507.66	-1.77%
43.	Sep 30, 2023	$68.90		22.51%	4,288.05	-4.87%
44.	Oct 31, 2023	$66.91	$0.37	-2.35%	4,193.80	-2.20%
45.	Nov 30, 2023	$75.87		13.39%	4,567.80	8.92%
46.	Dec 31, 2023	$76.50		0.83%	4,769.83	4.42%
47.	Jan 31, 2024	$82.88	$0.37	8.82%	4,845.65	1.59%
48.	Feb 29, 2024	$94.66		14.21%	5,096.27	5.17%
49.	Mar 31, 2024	$114.11		20.55%	5,254.35	3.10%
50.	Apr 30, 2024	$124.64	$0.445	9.62%	5,035.69	-4.16%
51.	May 31, 2024	$139.56		11.97%	5,277.51	4.80%
52.	Jun 30, 2024	$137.91		-1.18%	5,460.48	3.47%
53.	Jul 31, 2024	$113.68	$0.445	-17.25%	5,522.30	1.13%
54.	Aug 31, 2024	$115.54		1.64%	5,648.40	2.28%
55.	Sep 30, 2024	$118.54		2.60%	5,762.48	2.02%
56.	Oct 31, 2024	$123.63	$0.445	4.67%	5,705.45	-0.99%
57.	Nov 30, 2024	$127.59		3.20%	6,032.38	5.73%
58.	Dec 31, 2024	$115.24		-9.68%	5,881.63	-2.50%
59.	Jan 31, 2025	$103.60	$0.445	-9.71%	6,040.53	2.70%
60.	Feb 28, 2025	$102.76		-0.81%	5,954.50	-1.42%
61.	Mar 31, 2025	$91.15		-11.30%	5,611.85	-5.75%
62.	Apr 30, 2025	$91.76	$0.525	1.25%	5,569.06	-0.76%
63.	May 31, 2025	$111.27		21.26%	5,911.69	6.15%
64.	Jun 30, 2025	$122.60		10.18%	6,204.95	4.96%
65.	Jul 31, 2025	$132.69	$0.525	8.66%	6,339.39	2.17%
66.	Aug 31, 2025	$122.15		-7.94%	6,460.26	1.91%
67.	Sep 30, 2025	$141.77		16.06%	6,688.46	3.53%
68.	Oct 31, 2025	$162.01	$0.525	14.65%	6,840.20	2.27%
69.	Nov 30, 2025	$133.35		-17.69%	6,849.09	0.13%
70.	Dec 31, 2025	$125.88		-5.60%	6,845.50	-0.05%
71.	Jan 31, 2026	$114.44	$0.525	-8.67%	6,939.03	1.37%
Average (R):				3.02%		1.33%
Standard deviation:				9.54%		4.83%

Show all

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

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

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

Variance and Covariance

Dell Technologies Inc., calculation of variance and covariance of returns

t	Date	R_DELL,t	R_{S&P 500,t}	(R_DELL,t–R_DELL)²	(R_{S&P 500,t}–R_{S&P 500})²	(R_DELL,t–R_DELL)×(R_{S&P 500,t}–R_{S&P 500})
1.	Mar 31, 2020	-2.25%	-12.51%	27.76	191.48	72.91
2.	Apr 30, 2020	7.94%	12.68%	24.20	129.02	55.88
3.	May 31, 2020	16.28%	4.53%	175.84	10.26	42.47
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.	.	.	.	.	.	.
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70.	Dec 31, 2025	-5.60%	-0.05%	74.33	1.90	11.88
71.	Jan 31, 2026	-8.67%	1.37%	136.67	0.00	-0.48
Total (Σ):				6,374.48	1,636.00	1,539.36

t	Date	R_DELL,t	R_{S&P 500,t}	(R_DELL,t–R_DELL)²	(R_{S&P 500,t}–R_{S&P 500})²	(R_DELL,t–R_DELL)×(R_{S&P 500,t}–R_{S&P 500})
1.	Mar 31, 2020	-2.25%	-12.51%	27.76	191.48	72.91
2.	Apr 30, 2020	7.94%	12.68%	24.20	129.02	55.88
3.	May 31, 2020	16.28%	4.53%	175.84	10.26	42.47
4.	Jun 30, 2020	10.68%	1.84%	58.63	0.26	3.93
5.	Jul 31, 2020	8.90%	5.51%	34.58	17.51	24.61
6.	Aug 31, 2020	10.45%	7.01%	55.15	32.27	42.19
7.	Sep 30, 2020	2.44%	-3.92%	0.34	27.55	3.06
8.	Oct 31, 2020	-10.98%	-2.77%	195.90	16.75	57.28
9.	Nov 30, 2020	14.55%	10.75%	133.03	88.91	108.75
10.	Dec 31, 2020	6.17%	3.71%	9.93	5.70	7.52
11.	Jan 31, 2021	-0.55%	-1.11%	12.71	5.95	8.70
12.	Feb 28, 2021	11.22%	2.61%	67.28	1.65	10.53
13.	Mar 31, 2021	8.73%	4.24%	32.64	8.52	16.67
14.	Apr 30, 2021	11.55%	5.24%	72.74	15.34	33.41
15.	May 31, 2021	0.32%	0.55%	7.31	0.60	2.10
16.	Jun 30, 2021	1.04%	2.22%	3.90	0.80	-1.77
17.	Jul 31, 2021	-3.06%	2.27%	36.96	0.90	-5.77
18.	Aug 31, 2021	0.87%	2.90%	4.62	2.48	-3.38
19.	Sep 30, 2021	6.75%	-4.76%	13.93	37.00	-22.70
20.	Oct 31, 2021	5.72%	6.91%	7.29	31.23	15.09
21.	Nov 30, 2021	1.21%	-0.83%	3.28	4.66	3.91
22.	Dec 31, 2021	-0.53%	4.36%	12.61	9.22	-10.78
23.	Jan 31, 2022	1.14%	-5.26%	3.54	43.35	12.38
24.	Feb 28, 2022	-10.30%	-3.14%	177.35	19.91	59.42
25.	Mar 31, 2022	-1.51%	3.58%	20.53	5.07	-10.20
26.	Apr 30, 2022	-5.68%	-8.80%	75.66	102.44	88.04
27.	May 31, 2022	6.23%	0.01%	10.32	1.74	-4.24
28.	Jun 30, 2022	-7.47%	-8.39%	110.01	94.43	101.93
29.	Jul 31, 2022	-1.77%	9.11%	22.98	60.62	-37.33
30.	Aug 31, 2022	-15.02%	-4.24%	325.59	31.02	100.50
31.	Sep 30, 2022	-10.76%	-9.34%	189.88	113.75	146.96
32.	Oct 31, 2022	13.35%	7.99%	106.61	44.37	68.77
33.	Nov 30, 2022	16.64%	5.38%	185.53	16.40	55.16
34.	Dec 31, 2022	-10.20%	-5.90%	174.85	52.17	95.51
35.	Jan 31, 2023	1.82%	6.18%	1.45	23.52	-5.84
36.	Feb 28, 2023	0.05%	-2.61%	8.82	15.50	11.69
37.	Mar 31, 2023	-1.06%	3.51%	16.63	4.75	-8.89
38.	Apr 30, 2023	9.08%	1.46%	36.69	0.02	0.84
39.	May 31, 2023	3.04%	0.25%	0.00	1.16	-0.02
40.	Jun 30, 2023	20.75%	4.71%	314.51	11.48	60.09
41.	Jul 31, 2023	-1.52%	4.85%	20.57	12.39	-15.97
42.	Aug 31, 2023	6.27%	-1.77%	10.59	9.59	-10.08
43.	Sep 30, 2023	22.51%	-4.87%	379.90	38.41	-120.80
44.	Oct 31, 2023	-2.35%	-2.20%	28.85	12.42	18.93
45.	Nov 30, 2023	13.39%	8.92%	107.57	57.64	78.74
46.	Dec 31, 2023	0.83%	4.42%	4.79	9.59	-6.78
47.	Jan 31, 2024	8.82%	1.59%	33.68	0.07	1.53
48.	Feb 29, 2024	14.21%	5.17%	125.30	14.80	43.06
49.	Mar 31, 2024	20.55%	3.10%	307.21	3.16	31.13
50.	Apr 30, 2024	9.62%	-4.16%	43.54	30.11	-36.20
51.	May 31, 2024	11.97%	4.80%	80.12	12.09	31.12
52.	Jun 30, 2024	-1.18%	3.47%	17.66	4.59	-9.00
53.	Jul 31, 2024	-17.25%	1.13%	410.73	0.04	3.92
54.	Aug 31, 2024	1.64%	2.28%	1.91	0.92	-1.33
55.	Sep 30, 2024	2.60%	2.02%	0.18	0.48	-0.29
56.	Oct 31, 2024	4.67%	-0.99%	2.72	5.36	-3.82
57.	Nov 30, 2024	3.20%	5.73%	0.03	19.40	0.81
58.	Dec 31, 2024	-9.68%	-2.50%	161.27	14.63	48.57
59.	Jan 31, 2025	-9.71%	2.70%	162.16	1.89	-17.52
60.	Feb 28, 2025	-0.81%	-1.42%	14.67	7.56	10.53
61.	Mar 31, 2025	-11.30%	-5.75%	205.00	50.13	101.37
62.	Apr 30, 2025	1.25%	-0.76%	3.15	4.36	3.71
63.	May 31, 2025	21.26%	6.15%	332.78	23.30	88.05
64.	Jun 30, 2025	10.18%	4.96%	51.30	13.21	26.04
65.	Jul 31, 2025	8.66%	2.17%	31.79	0.71	4.74
66.	Aug 31, 2025	-7.94%	1.91%	120.19	0.34	-6.37
67.	Sep 30, 2025	16.06%	3.53%	170.11	4.87	28.78
68.	Oct 31, 2025	14.65%	2.27%	135.19	0.89	10.97
69.	Nov 30, 2025	-17.69%	0.13%	428.90	1.43	24.76
70.	Dec 31, 2025	-5.60%	-0.05%	74.33	1.90	11.88
71.	Jan 31, 2026	-8.67%	1.37%	136.67	0.00	-0.48
Total (Σ):				6,374.48	1,636.00	1,539.36

Show all

Variance_DELL = Σ(R_DELL,t–R_DELL)² ÷ (71 – 1)
= 6,374.48 ÷ (71 – 1)
= 91.06

Variance_{S&P 500} = Σ(R_{S&P 500,t}–R_{S&P 500})² ÷ (71 – 1)
= 1,636.00 ÷ (71 – 1)
= 23.37

Covariance_{DELL, S&P 500} = Σ(R_DELL,t–R_DELL)×(R_{S&P 500,t}–R_{S&P 500}) ÷ (71 – 1)
= 1,539.36 ÷ (71 – 1)
= 21.99

Systematic Risk (β) Estimation

Variance_DELL	91.06
Variance_{S&P 500}	23.37
Covariance_{DELL, S&P 500}	21.99
Correlation coefficient_{DELL, S&P 500}¹	0.48
β_DELL²	0.94
α_DELL³	1.77%

Calculations

¹ Correlation coefficient_{DELL, S&P 500}
= Covariance_{DELL, S&P 500} ÷ (Standard deviation_DELL × Standard deviation_{S&P 500})
= 21.99 ÷ (9.54% × 4.83%)
= 0.48

² β_DELL
= Covariance_{DELL, S&P 500} ÷ Variance_{S&P 500}
= 21.99 ÷ 23.37
= 0.94

³ α_DELL
= Average_DELL – β_DELL × Average_{S&P 500}
= 3.02% – 0.94 × 1.33%
= 1.77%

Expected Rate of Return

Assumptions
Rate of return on LT Treasury Composite¹	R_F	4.95%
Expected rate of return on market portfolio²	E(R_M)	17.36%
Systematic risk (β) of Dell Technologies Inc. common stock	β_DELL	0.94

Expected rate of return on Dell Technologies Inc. common stock³	E(R_DELL)	16.63%

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).

² See details »

³ E(R_DELL) = R_F + β_DELL [E(R_M) – R_F]
= 4.95% + 0.94 [17.36% – 4.95%]
= 16.63%