CAPMmarket modelPower PointIn this paper, we show hyperlinked Power Point lecture slides that show how to calculate the beta coefficient for Dow Chemical Company using the S&P 500 as the market index. This paper shows how to collect data for both Dow Chemical and for the S&P 500 Stock Index...
Calculate the cost of equity (Re). It is the return shareholders require based on the company’s equity riskiness. One commonly used method to calculate Re is the Capital Asset Pricing Model (CAPM), which considers the risk-free rate, the market risk premium, and the company’s beta. 5....