Select a public company you believe is a good investment and able to look up...
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Finance
Select a public company you believe is a good investment and able to look up their financials online. Also, select a company you know is a high-risk firm. Using a site such as Yahoo Finance or Google Finance, look up the company beta. Also look up the current 10-year treasury rate. Using the market risk premium in the book, calculate the expected return using the CAPM model. Then select a company like Coca Cola and do the same. Comparing the companies' ROE, you can show that Coca Cola (or similar) has a better return given the risk. What did you learn from this research project?
Show your work.
Show calculations for the CAPM model.
(market risk premium in the book: Fundamentals of Corporate Finance by: R. Brealey, S. Myers, A. Marcus 2020 10th Edition
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