Choose 5 major securities  from different industries, among which one can be the one you chose in part 1 of the question, Retrieve the data on the companies’ historical data and calculate annual rate of return for the past 20 years for each security. 1. Walmart stock price for 20 years  Year Average Stock Price 2020 120.8603 2019 108.4054 2018 92.3698 2017 78.9624 2016 69.5471 2015 72.4911 2014 77.3274 2013 75.3205 2012 67.2151 2011 54.3535 2010 53.0022 2009 50.5517 2008 55.0489 2007 46.9265 2006 46.6282 2005 48.7378 2004 54.9097 2003 54.3112 2002 55.3673 2001 51.9974 2000 53.715 2. Marriot stock price for 20 yeras . Year Average Stock Price 2020 102.9253 2019 129.373 2018 129.5615 2017 103.2572 2016 69.5865 2015 75.7721 2014 63.2982 2013 42.1856 2012 37.0968 2011 33.7237 2010 33.7203 2009 21.9637 2008 27.6382 2007 43.4326 2006 37.4723 2005 32.1651 2004 24.4984 2003 19.0586 2002 18.2184 2001 20.7659 2000 17.7474 3. Micrososft stock prices. Year Average Stock Price 2020 178.1475 2019 130.382 2018 101.034 2017 71.984 2016 55.2593 2015 46.7136 2014 42.4533 2013 32.4915 2012 29.8203 2011 26.0522 2010 27.0584 2009 22.9766 2008 26.6475 2007 30.4459 2006 26.2908 2005 25.871 2004 27.1247 2003 26.1014 2002 27.2745 2001 31.2712 2000 38.1098 4. Apple stock prices for 20 years  Year Average Stock Price 2020 314.1174 2019 208.2559 2018 189.0534 2017 150.5511 2016 104.604 2015 120.0385 2014 92.2646 2013 67.5193 2012 82.2928 2011 52.0006 2010 37.1203 2009 20.9736 2008 20.2827 2007 18.3249 2006 10.116 2005 6.668 2004 2.5376 2003 1.3245 2002 1.3671 2001 1.4442 2000 3.2651 5. Coca Cola stock prices for 20 years.  Year Average Stock Price 2020 49.4781 2019 50.8279 2018 45.4099 2017 44.348 2016 43.545 2015 41.2415 2014 40.8417 2013 39.6644 2012 37.0594 2011 33.324 2010 28.2693 2009 24.38 2008 26.9072 2007 26.8949 2006 21.936 2005 21.3772 2004 23.2246 2003 22.0372 2002 24.8825 2001 24.3459 2000 27.7074

The attached file contains hypothetical data for working this problem. Goodman Corporation’s and Landry Incorporated’s stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends. The risk-free rate on long-term Treasury bonds is 8.04%.  Assume that the market risk premium is 6%.  What is the expected return on the market?  Now use the SML equation to calculate the two companies' required returns.

Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $42. The stock will pay a dividend at year-end of $4.00. Assume that risk-free Treasury securities currently offer an interest rate of 1.7%.   Average rates of return on Treasury bills, government bonds, and common stocks, 1900–2017 (figures in percent per year) are as follows.   Portfolio Average AnnualRate of Return (%) Average Premium (Extra returnversus Treasury bills) (%) Treasury bills   3.8         Treasury bonds   5.3     1.5   Common stocks   11.5     7.7       a. What is the discount rate on the stock? (Enter your answer as a percent rounded to 2 decimal places.)   b. What price should she be willing to pay for the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

As of February 2010, what is your assessment of the worth of Wal-Mart’sstock? Utilize all of the methods discussed in the case to value the shares,including the following:a. The perpetual growth in dividendsb. Forecasted dividends for the next several years plus sale of the stock in thefuture