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Unformatted text preview: Chapter 12 The Capital Asset Pricing Model Solutions to Chapter 12 Data Case Numerical solutions to this case are available in Excel spreadsheet form, available on the Instructors Resource Center: http://www.aw-bc.com, with the files for the Solutions Manual, and on the Instructors Resource Disk. The spreadsheet solution contains three worksheets. The Prices worksheet contains the prices of the 12 stocks, the S&P 500, and the quotes for the Eurodollar rates. The Returns worksheet shows the returns computed from the prices and quotes. The Solutions worksheet contains the solutions to the case. Questions 2 through 5 require the data downloads and manipulation to determine the returns computed on the Returns worksheet. 6. Betas for each of the stock are as follows: Stock AAPL ADM BA C CAT DE Beta 1.5052327 0.887392 1.120696 1.301942 1.400508 0.992507 Stock HSY MOT PG SIRI WMT YHOO Beta 0.12406 1.165026 0.158502 4.930181 0.044793 2.503753 7. The 1-month Eurodollar rate was 5.30% at the time of these solutions, but can be changed on the spreadsheet to The 1-month Eurodollar rate was 5....
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- Spring '09