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Calculate Capital Gains Yield And Arithmetic And Geometric Rates Of Return

Question

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%.

Summary

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.

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    Giuseppe

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