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Expected Return for Honeywell using the CAPM

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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?

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"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