Calculate Capital Gains Yield And Arithmetic And Geometric Rates Of Return


Using the data provided, solve problems

1. Calculate the month dividend and capital gains yields for KO.

2. Find the arithmetic and geometric rates of return for the S&P 500 and KO.

3. Using the returns from the S&P 500 and KO, calculate the Beta on KO.

4. Is does KO have more systemic risk than the S&P 500?

5. Using the following information, solve for the expected return on KO: (a) Return on the Risk Free Asset—3%, (b) Beta for KO—0.80, and (c) Return on the S&P 500 of 7%.

6. Using the following information, solve for the beta of KO: (a) The Return on the Risk Free Asset is 2%, (b) the Expected Return on KO is 12%, and (c) The Return on the S&P 500 is 8%.


The question belongs to Finance and it discusses about calculation of month dividend, capital gains yields, arithmetic and geometric rates of return, expected return, return on risk free assets, etc from a company’s data.

Total Word Count NA

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.