I need to learn how to calculate the current Beta for each security (use .3 Beta for bonds and 0 for money market instruments for these companies)
GE, Wal-Mart, Citibank, Ford, and Dell
Excel or Word would be fine, thanks.© BrainMass Inc. brainmass.com June 4, 2020, 12:12 am ad1c9bdddf
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The securities that a company would have would be debt and common stock. Debt beta is already given as 0.3.
The common stock beta is calculated as:
1. We take the stock price for the company and an index (usually S&P 500) for 37 months (so as to get 36 data points ...
The solution explains how to calculate the stock beta using stock prices