The required rate of return for Air Asia. a. Use the CAPM method to determine rs. b.
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The required rate of return for Air Asia.
a. Use the CAPM method to determine rs.
b. Use the Treasury 10-year bond as the rRF.
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Month Dec-20 Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 Hay-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Stock Return Data for Air Asia and the S&P Index Air Asia Adjusted Market Level (S&P 500) Index at month end 3756.07 3621.63 3269.96 3363.00 3500.31 3271.12 3100.29 3044.31 2912.43 2584.59 2954. 22 3225. 52 3230.78 Description of Data Average Return (monthly) Standard Deviation (monthly Minimum Monthly Return Maximum Monthly Return Harket's Return 3.71% 10. 75% -2.77% -3.92% 7.00% 5.51% 1.84% 4.53% 12. 68% -25.02% -8.40% -0.16% ΝΑ 5. 75% 10.05% -12.51% 12. 68% Correlation between Air Asia and the Market Beta:bAir Asia P Air Asia, M (O Air Asia / 0 M) Beta (using the slope function) Intercept (using the INTERCEPT function) R²(Using the RSQ function) Stock Price at month end (Currency in MYR) 0.8850 0.7100 0.5500 0.6700 0.6600 0.6400 0.8750 0.6900 0.8150 0.7900 1.0000 1.4300 1.7000 Air Asia's Return 24. 65% 29.09% -17.91% 1.52% 3.13% -26.86% 26.81% -15.34% 3.16% -21.00% -30.07% -15.88% NA -38. 70% 21. 20% -30.07% 29.09% 0.49 1.03 1.03 -0.04 0.24 Month Dec-20 Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 Hay-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Stock Return Data for Air Asia and the S&P Index Air Asia Adjusted Market Level (S&P 500) Index at month end 3756.07 3621.63 3269.96 3363.00 3500.31 3271.12 3100.29 3044.31 2912.43 2584.59 2954. 22 3225. 52 3230.78 Description of Data Average Return (monthly) Standard Deviation (monthly Minimum Monthly Return Maximum Monthly Return Harket's Return 3.71% 10. 75% -2.77% -3.92% 7.00% 5.51% 1.84% 4.53% 12. 68% -25.02% -8.40% -0.16% ΝΑ 5. 75% 10.05% -12.51% 12. 68% Correlation between Air Asia and the Market Beta:bAir Asia P Air Asia, M (O Air Asia / 0 M) Beta (using the slope function) Intercept (using the INTERCEPT function) R²(Using the RSQ function) Stock Price at month end (Currency in MYR) 0.8850 0.7100 0.5500 0.6700 0.6600 0.6400 0.8750 0.6900 0.8150 0.7900 1.0000 1.4300 1.7000 Air Asia's Return 24. 65% 29.09% -17.91% 1.52% 3.13% -26.86% 26.81% -15.34% 3.16% -21.00% -30.07% -15.88% NA -38. 70% 21. 20% -30.07% 29.09% 0.49 1.03 1.03 -0.04 0.24
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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