UCLA ECON 106F - Lab4Pwpt (4 pages)

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Lab4Pwpt



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Lab4Pwpt

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Pages:
4
School:
University of California, Los Angeles
Course:
Econ 106f - Finance

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LAB 4 By Linda Che Anna Carter Hernandez WALT DISNEY COMPANY DIS SP 500 GSPC First we calculate Monthly risk free return in the CAPM from the Eurodollar rate Excess returns for DIS and SP 500 actual monthly return risk free rate BETA DIS MARKET RISK The slope of the best fitting line through the excess monthly returns of DIS against proxy S P 500 From Yahoo Finance 1 3 Our calculation 1 1959 How do they compare Relative to Yahoo Finance s figure our calculation is slightly lower However Yahoo Finance is calculating this measure based on realtime current data as opposed to our data which ranges from 2007 to 2012 ALPHA DIS How might you interpret this alpha This negative alpha stock implies that investors may not be interested in holding stock as they would receive a higher return with positive alpha stocks Intercept 0 0038



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