Question: - Submit your report in MS Excel format. Find the following Betas for the companies listed below: (use www.globeinvestor.com) Assuming a risk-free rate (R f

- Submit your report in MS Excel format.

Find the following Betas for the companies listed below: (use www.globeinvestor.com)

Assuming a risk-free rate (Rf) of 2% and the Return from the market (Rm) of 6.5% calculated the expected return of each company based on the Capital Asset Pricing Model.

Company

Stock Symbol

Beta

Expected Return

TD Bank

TD-T

Royal Bank

RY-T

Canadian Tire Corporation

CTC.A-T

Suncor Energy

SU-T

Sierra Wireless

SW-T

Twitter

TWTR-N

Facebook

FB-Q

Microsoft

MSFT-Q

Apple

AAPL-Q

Amazon

AMZN-Q

Alphabet Inc. (Google)

GOOGL-Q

Starbucks

SBUX-Q

Re-order your list from the lowest beta to the highest and compare their expected return.

  1. Comment on your results. (Hint: Look at the grouping of the companies, and the value of betas from 0 to 0.5, from 0.5 to 1, from 1 to 1.25 and 1.25 and up)

  1. What does the value of beta tell us about a company? What does the value of beta and CAPM tell us about the risk in investing in a company?

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