Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Ross Stores Inc. common stock.
Paying user area
Try for free
Ross Stores Inc. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Ross Stores Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Rates of Return
Ross Stores Inc. (ROST) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceROST,t1 | DividendROST,t1 | RROST,t2 | PriceS&P 500,t | RS&P 500,t3 |
Feb 29, 2016 | ||||||
1. | Mar 31, 2016 | |||||
2. | Apr 30, 2016 | |||||
3. | May 31, 2016 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
70. | Dec 31, 2021 | |||||
71. | Jan 31, 2022 | |||||
Average (R): | ||||||
Standard deviation: |
Ross Stores Inc. (ROST) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceROST,t1 | DividendROST,t1 | RROST,t2 | PriceS&P 500,t | RS&P 500,t3 |
Feb 29, 2016 | ||||||
1. | Mar 31, 2016 | |||||
2. | Apr 30, 2016 | |||||
3. | May 31, 2016 | |||||
4. | Jun 30, 2016 | |||||
5. | Jul 31, 2016 | |||||
6. | Aug 31, 2016 | |||||
7. | Sep 30, 2016 | |||||
8. | Oct 31, 2016 | |||||
9. | Nov 30, 2016 | |||||
10. | Dec 31, 2016 | |||||
11. | Jan 31, 2017 | |||||
12. | Feb 28, 2017 | |||||
13. | Mar 31, 2017 | |||||
14. | Apr 30, 2017 | |||||
15. | May 31, 2017 | |||||
16. | Jun 30, 2017 | |||||
17. | Jul 31, 2017 | |||||
18. | Aug 31, 2017 | |||||
19. | Sep 30, 2017 | |||||
20. | Oct 31, 2017 | |||||
21. | Nov 30, 2017 | |||||
22. | Dec 31, 2017 | |||||
23. | Jan 31, 2018 | |||||
24. | Feb 28, 2018 | |||||
25. | Mar 31, 2018 | |||||
26. | Apr 30, 2018 | |||||
27. | May 31, 2018 | |||||
28. | Jun 30, 2018 | |||||
29. | Jul 31, 2018 | |||||
30. | Aug 31, 2018 | |||||
31. | Sep 30, 2018 | |||||
32. | Oct 31, 2018 | |||||
33. | Nov 30, 2018 | |||||
34. | Dec 31, 2018 | |||||
35. | Jan 31, 2019 | |||||
36. | Feb 28, 2019 | |||||
37. | Mar 31, 2019 | |||||
38. | Apr 30, 2019 | |||||
39. | May 31, 2019 | |||||
40. | Jun 30, 2019 | |||||
41. | Jul 31, 2019 | |||||
42. | Aug 31, 2019 | |||||
43. | Sep 30, 2019 | |||||
44. | Oct 31, 2019 | |||||
45. | Nov 30, 2019 | |||||
46. | Dec 31, 2019 | |||||
47. | Jan 31, 2020 | |||||
48. | Feb 29, 2020 | |||||
49. | Mar 31, 2020 | |||||
50. | Apr 30, 2020 | |||||
51. | May 31, 2020 | |||||
52. | Jun 30, 2020 | |||||
53. | Jul 31, 2020 | |||||
54. | Aug 31, 2020 | |||||
55. | Sep 30, 2020 | |||||
56. | Oct 31, 2020 | |||||
57. | Nov 30, 2020 | |||||
58. | Dec 31, 2020 | |||||
59. | Jan 31, 2021 | |||||
60. | Feb 28, 2021 | |||||
61. | Mar 31, 2021 | |||||
62. | Apr 30, 2021 | |||||
63. | May 31, 2021 | |||||
64. | Jun 30, 2021 | |||||
65. | Jul 31, 2021 | |||||
66. | Aug 31, 2021 | |||||
67. | Sep 30, 2021 | |||||
68. | Oct 31, 2021 | |||||
69. | Nov 30, 2021 | |||||
70. | Dec 31, 2021 | |||||
71. | Jan 31, 2022 | |||||
Average (R): | ||||||
Standard deviation: |
Show all
1 Data in US$ per share of common stock, adjusted for splits and stock dividends.
2 Rate of return on common stock of ROST during period t
3 Rate of return on S&P 500 (the market portfolio proxy) during period t
Variance and Covariance
t | Date | RROST,t | RS&P 500,t | (RROST,t–RROST)2 | (RS&P 500,t–RS&P 500)2 | (RROST,t–RROST)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Mar 31, 2016 | |||||
2. | Apr 30, 2016 | |||||
3. | May 31, 2016 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
70. | Dec 31, 2021 | |||||
71. | Jan 31, 2022 | |||||
Total (Σ): |
t | Date | RROST,t | RS&P 500,t | (RROST,t–RROST)2 | (RS&P 500,t–RS&P 500)2 | (RROST,t–RROST)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Mar 31, 2016 | |||||
2. | Apr 30, 2016 | |||||
3. | May 31, 2016 | |||||
4. | Jun 30, 2016 | |||||
5. | Jul 31, 2016 | |||||
6. | Aug 31, 2016 | |||||
7. | Sep 30, 2016 | |||||
8. | Oct 31, 2016 | |||||
9. | Nov 30, 2016 | |||||
10. | Dec 31, 2016 | |||||
11. | Jan 31, 2017 | |||||
12. | Feb 28, 2017 | |||||
13. | Mar 31, 2017 | |||||
14. | Apr 30, 2017 | |||||
15. | May 31, 2017 | |||||
16. | Jun 30, 2017 | |||||
17. | Jul 31, 2017 | |||||
18. | Aug 31, 2017 | |||||
19. | Sep 30, 2017 | |||||
20. | Oct 31, 2017 | |||||
21. | Nov 30, 2017 | |||||
22. | Dec 31, 2017 | |||||
23. | Jan 31, 2018 | |||||
24. | Feb 28, 2018 | |||||
25. | Mar 31, 2018 | |||||
26. | Apr 30, 2018 | |||||
27. | May 31, 2018 | |||||
28. | Jun 30, 2018 | |||||
29. | Jul 31, 2018 | |||||
30. | Aug 31, 2018 | |||||
31. | Sep 30, 2018 | |||||
32. | Oct 31, 2018 | |||||
33. | Nov 30, 2018 | |||||
34. | Dec 31, 2018 | |||||
35. | Jan 31, 2019 | |||||
36. | Feb 28, 2019 | |||||
37. | Mar 31, 2019 | |||||
38. | Apr 30, 2019 | |||||
39. | May 31, 2019 | |||||
40. | Jun 30, 2019 | |||||
41. | Jul 31, 2019 | |||||
42. | Aug 31, 2019 | |||||
43. | Sep 30, 2019 | |||||
44. | Oct 31, 2019 | |||||
45. | Nov 30, 2019 | |||||
46. | Dec 31, 2019 | |||||
47. | Jan 31, 2020 | |||||
48. | Feb 29, 2020 | |||||
49. | Mar 31, 2020 | |||||
50. | Apr 30, 2020 | |||||
51. | May 31, 2020 | |||||
52. | Jun 30, 2020 | |||||
53. | Jul 31, 2020 | |||||
54. | Aug 31, 2020 | |||||
55. | Sep 30, 2020 | |||||
56. | Oct 31, 2020 | |||||
57. | Nov 30, 2020 | |||||
58. | Dec 31, 2020 | |||||
59. | Jan 31, 2021 | |||||
60. | Feb 28, 2021 | |||||
61. | Mar 31, 2021 | |||||
62. | Apr 30, 2021 | |||||
63. | May 31, 2021 | |||||
64. | Jun 30, 2021 | |||||
65. | Jul 31, 2021 | |||||
66. | Aug 31, 2021 | |||||
67. | Sep 30, 2021 | |||||
68. | Oct 31, 2021 | |||||
69. | Nov 30, 2021 | |||||
70. | Dec 31, 2021 | |||||
71. | Jan 31, 2022 | |||||
Total (Σ): |
Show all
VarianceROST = Σ(RROST,t–RROST)2 ÷ (71 – 1)
= ÷ (71 – 1)
=
VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (71 – 1)
= ÷ (71 – 1)
=
CovarianceROST, S&P 500 = Σ(RROST,t–RROST)×(RS&P 500,t–RS&P 500) ÷ (71 – 1)
= ÷ (71 – 1)
=
Systematic Risk (β) Estimation
VarianceROST | |
VarianceS&P 500 | |
CovarianceROST, S&P 500 | |
Correlation coefficientROST, S&P 5001 | |
βROST2 | |
αROST3 |
Calculations
1 Correlation coefficientROST, S&P 500
= CovarianceROST, S&P 500 ÷ (Standard deviationROST × Standard deviationS&P 500)
= ÷ ( × )
=
2 βROST
= CovarianceROST, S&P 500 ÷ VarianceS&P 500
= ÷
=
3 αROST
= AverageROST – βROST × AverageS&P 500
= – ×
=
Expected Rate of Return
Assumptions | ||
Rate of return on LT Treasury Composite1 | RF | |
Expected rate of return on market portfolio2 | E(RM) | |
Systematic risk (β) of Ross Stores Inc. common stock | βROST | |
Expected rate of return on Ross Stores Inc. common stock3 | E(RROST) |
1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).
3 E(RROST) = RF + βROST [E(RM) – RF]
= + [ – ]
=