Stock Analysis on Net

Apache Corp. (NYSE:APA)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 4, 2016.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

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Rates of Return

Apache Corp., monthly rates of return

Microsoft Excel
Apache Corp. (APA) Standard & Poor’s 500 (S&P 500)
t Date PriceAPA,t1 DividendAPA,t1 RAPA,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2011
1. Feb 28, 2011
2. Mar 31, 2011
3. Apr 30, 2011
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2015
59. Dec 31, 2015
Average (R):
Standard deviation:
Apache Corp. (APA) Standard & Poor’s 500 (S&P 500)
t Date PriceAPA,t1 DividendAPA,t1 RAPA,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2011
1. Feb 28, 2011
2. Mar 31, 2011
3. Apr 30, 2011
4. May 31, 2011
5. Jun 30, 2011
6. Jul 31, 2011
7. Aug 31, 2011
8. Sep 30, 2011
9. Oct 31, 2011
10. Nov 30, 2011
11. Dec 31, 2011
12. Jan 31, 2012
13. Feb 29, 2012
14. Mar 31, 2012
15. Apr 30, 2012
16. May 31, 2012
17. Jun 30, 2012
18. Jul 31, 2012
19. Aug 31, 2012
20. Sep 30, 2012
21. Oct 31, 2012
22. Nov 30, 2012
23. Dec 31, 2012
24. Jan 31, 2013
25. Feb 28, 2013
26. Mar 31, 2013
27. Apr 30, 2013
28. May 31, 2013
29. Jun 30, 2013
30. Jul 31, 2013
31. Aug 31, 2013
32. Sep 30, 2013
33. Oct 31, 2013
34. Nov 30, 2013
35. Dec 31, 2013
36. Jan 31, 2014
37. Feb 28, 2014
38. Mar 31, 2014
39. Apr 30, 2014
40. May 31, 2014
41. Jun 30, 2014
42. Jul 31, 2014
43. Aug 31, 2014
44. Sep 30, 2014
45. Oct 31, 2014
46. Nov 30, 2014
47. Dec 31, 2014
48. Jan 31, 2015
49. Feb 28, 2015
50. Mar 31, 2015
51. Apr 30, 2015
52. May 31, 2015
53. Jun 30, 2015
54. Jul 31, 2015
55. Aug 31, 2015
56. Sep 30, 2015
57. Oct 31, 2015
58. Nov 30, 2015
59. Dec 31, 2015
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 APA during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t


Variance and Covariance

Apache Corp., calculation of variance and covariance of returns

Microsoft Excel
t Date RAPA,t RS&P 500,t (RAPA,tRAPA)2 (RS&P 500,tRS&P 500)2 (RAPA,tRAPA)×(RS&P 500,tRS&P 500)
1. Feb 28, 2011
2. Mar 31, 2011
3. Apr 30, 2011
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2015
59. Dec 31, 2015
Total (Σ):
t Date RAPA,t RS&P 500,t (RAPA,tRAPA)2 (RS&P 500,tRS&P 500)2 (RAPA,tRAPA)×(RS&P 500,tRS&P 500)
1. Feb 28, 2011
2. Mar 31, 2011
3. Apr 30, 2011
4. May 31, 2011
5. Jun 30, 2011
6. Jul 31, 2011
7. Aug 31, 2011
8. Sep 30, 2011
9. Oct 31, 2011
10. Nov 30, 2011
11. Dec 31, 2011
12. Jan 31, 2012
13. Feb 29, 2012
14. Mar 31, 2012
15. Apr 30, 2012
16. May 31, 2012
17. Jun 30, 2012
18. Jul 31, 2012
19. Aug 31, 2012
20. Sep 30, 2012
21. Oct 31, 2012
22. Nov 30, 2012
23. Dec 31, 2012
24. Jan 31, 2013
25. Feb 28, 2013
26. Mar 31, 2013
27. Apr 30, 2013
28. May 31, 2013
29. Jun 30, 2013
30. Jul 31, 2013
31. Aug 31, 2013
32. Sep 30, 2013
33. Oct 31, 2013
34. Nov 30, 2013
35. Dec 31, 2013
36. Jan 31, 2014
37. Feb 28, 2014
38. Mar 31, 2014
39. Apr 30, 2014
40. May 31, 2014
41. Jun 30, 2014
42. Jul 31, 2014
43. Aug 31, 2014
44. Sep 30, 2014
45. Oct 31, 2014
46. Nov 30, 2014
47. Dec 31, 2014
48. Jan 31, 2015
49. Feb 28, 2015
50. Mar 31, 2015
51. Apr 30, 2015
52. May 31, 2015
53. Jun 30, 2015
54. Jul 31, 2015
55. Aug 31, 2015
56. Sep 30, 2015
57. Oct 31, 2015
58. Nov 30, 2015
59. Dec 31, 2015
Total (Σ):

Show all

VarianceAPA = Σ(RAPA,tRAPA)2 ÷ (59 – 1)
= ÷ (59 – 1)
=

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= ÷ (59 – 1)
=

CovarianceAPA, S&P 500 = Σ(RAPA,tRAPA)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= ÷ (59 – 1)
=


Systematic Risk (β) Estimation

Microsoft Excel
VarianceAPA
VarianceS&P 500
CovarianceAPA, S&P 500
Correlation coefficientAPA, S&P 5001
βAPA2
αAPA3

Calculations

1 Correlation coefficientAPA, S&P 500
= CovarianceAPA, S&P 500 ÷ (Standard deviationAPA × Standard deviationS&P 500)
= ÷ ( × )
=

2 βAPA
= CovarianceAPA, S&P 500 ÷ VarianceS&P 500
= ÷
=

3 αAPA
= AverageAPA – βAPA × AverageS&P 500
= ×
=


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF
Expected rate of return on market portfolio2 E(RM)
Systematic risk (β) of Apache Corp. common stock βAPA
 
Expected rate of return on Apache Corp. common stock3 E(RAPA)

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).

2 See details »

3 E(RAPA) = RF + βAPA [E(RM) – RF]
= + []
=