Expected Return for Honeywell using the CAPM

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Expected Return: You want to find the expected return for Honeywell using the CAPM. First you need the market risk premium. Go to www.cnnfn.com and find the current interest rate three-month Treasury bills. Use the average large-company stock return in Table 12.3 to calculate the market risk premium. Next, go to finance.yahoo.com, enter the ticker symbol HON for Honeywell, and find the beta for Honeywell using CAPM? What assumptions have you made to arrive at this number?

© BrainMass Inc. brainmass.com June 3, 2020, 11:02 pm ad1c9bdddf
https://brainmass.com/business/capital-asset-pricing-model/expected-return-for-honeywell-using-the-capm-260067

Solution Preview

Please see the attached file.

"Expected Return: You want to find the expected return for Honeywell using the CAPM. First you need the market risk premium. Go to www.cnnfn.com and find the current interest rate three-month Treasury bills. Use the average large-company stock return in Table 12.3 to calculate the market risk premium. Next, go to finance.yahoo.com, enter the ticker symbol HON for Honeywell, and find the beta for Honeywell. What is the ...

Solution Summary

Calculates Expected Return for Honeywell using the CAPM.

$2.19