FIN 402 Expect Success/uophelp.com FIN 402 Expect Success/uophelp.com | Page 14

19. The standard deviation of a risk-free asset is:
20. A good way to minimize risk and receive an optimum return on your
portfolio is:
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FIN 402 Week 2 Weekly Question
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1. (2 point) Calculate the expected return of the following stocks using
CAPM. You can use internet websites to get Beta figures, such as Yahoo!
Finance, Google Finance, MSN Money, Marketwatch, etc. Use 4% as the
risk free rate and 6% as the risk premium.
a.

Proctor & Gamble (PG)

b.

Microsoft (MSFT)

c.

Macy’s (M)

d.

JP Morgan Chase (JPM)

e.

Southern Company (SO)

2. (2 points) Look up Microsoft’s financials on the internet. Sites to use
include those listed above as well as the SEC’s website – www.sec.gov.
Select two ratios from each of the following categories (8 calculations in
total) and show your calculations. Be sure to show the formula and your
calculations. No points will be given if work is not shown even if you get
the correct answer.
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