Choose a company listed in the FTSE100, Discuss whether this chosen share has a defence, neutral or
Question:
Choose a company listed in the FTSE100,
Discuss whether this chosen share has a defence, neutral or aggressive beta. You
have to back up the beta of your chosen share by either references, or by performing
regression analysis using historical price data for this chosen company against the FTSE 100
index. Historical price data for individual shares in FTSE100 index can be collected from
internet sources (for example
https://finance.yahoo.com/). Based on your market view for the
FTSE100 index next year and beta for your chosen share, calculate the expected rate of return
for this share based on Capital Asset Pricing Model (CAPM). Risk free rate of return is
assumed to be 0.1% a year.
Ethical Obligations and Decision Making in Accounting Text and Cases
ISBN: 978-0077862213
3rd edition
Authors: Steven Mintz, Roselyn Morris