Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Carrier Global Corp. common stock.
Paying user area
Try for free
Carrier Global Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2020
- Current Ratio since 2020
- Total Asset Turnover since 2020
- Price to Book Value (P/BV) since 2020
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Carrier Global Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Rates of Return
Carrier Global Corp. (CARR) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceCARR,t1 | DividendCARR,t1 | RCARR,t2 | PriceS&P 500,t | RS&P 500,t3 |
Mar 31, 2020 | ||||||
1. | Apr 30, 2020 | |||||
2. | May 31, 2020 | |||||
3. | Jun 30, 2020 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
32. | Nov 30, 2022 | |||||
33. | Dec 31, 2022 | |||||
Average (R): | ||||||
Standard deviation: |
Carrier Global Corp. (CARR) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceCARR,t1 | DividendCARR,t1 | RCARR,t2 | PriceS&P 500,t | RS&P 500,t3 |
Mar 31, 2020 | ||||||
1. | Apr 30, 2020 | |||||
2. | May 31, 2020 | |||||
3. | Jun 30, 2020 | |||||
4. | Jul 31, 2020 | |||||
5. | Aug 31, 2020 | |||||
6. | Sep 30, 2020 | |||||
7. | Oct 31, 2020 | |||||
8. | Nov 30, 2020 | |||||
9. | Dec 31, 2020 | |||||
10. | Jan 31, 2021 | |||||
11. | Feb 28, 2021 | |||||
12. | Mar 31, 2021 | |||||
13. | Apr 30, 2021 | |||||
14. | May 31, 2021 | |||||
15. | Jun 30, 2021 | |||||
16. | Jul 31, 2021 | |||||
17. | Aug 31, 2021 | |||||
18. | Sep 30, 2021 | |||||
19. | Oct 31, 2021 | |||||
20. | Nov 30, 2021 | |||||
21. | Dec 31, 2021 | |||||
22. | Jan 31, 2022 | |||||
23. | Feb 28, 2022 | |||||
24. | Mar 31, 2022 | |||||
25. | Apr 30, 2022 | |||||
26. | May 31, 2022 | |||||
27. | Jun 30, 2022 | |||||
28. | Jul 31, 2022 | |||||
29. | Aug 31, 2022 | |||||
30. | Sep 30, 2022 | |||||
31. | Oct 31, 2022 | |||||
32. | Nov 30, 2022 | |||||
33. | Dec 31, 2022 | |||||
Average (R): | ||||||
Standard deviation: |
Show all
1 Data in US$ per share of common stock, adjusted for splits and stock dividends.
2 Rate of return on common stock of CARR during period t
3 Rate of return on S&P 500 (the market portfolio proxy) during period t
Variance and Covariance
t | Date | RCARR,t | RS&P 500,t | (RCARR,t–RCARR)2 | (RS&P 500,t–RS&P 500)2 | (RCARR,t–RCARR)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Apr 30, 2020 | |||||
2. | May 31, 2020 | |||||
3. | Jun 30, 2020 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
32. | Nov 30, 2022 | |||||
33. | Dec 31, 2022 | |||||
Total (Σ): |
t | Date | RCARR,t | RS&P 500,t | (RCARR,t–RCARR)2 | (RS&P 500,t–RS&P 500)2 | (RCARR,t–RCARR)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Apr 30, 2020 | |||||
2. | May 31, 2020 | |||||
3. | Jun 30, 2020 | |||||
4. | Jul 31, 2020 | |||||
5. | Aug 31, 2020 | |||||
6. | Sep 30, 2020 | |||||
7. | Oct 31, 2020 | |||||
8. | Nov 30, 2020 | |||||
9. | Dec 31, 2020 | |||||
10. | Jan 31, 2021 | |||||
11. | Feb 28, 2021 | |||||
12. | Mar 31, 2021 | |||||
13. | Apr 30, 2021 | |||||
14. | May 31, 2021 | |||||
15. | Jun 30, 2021 | |||||
16. | Jul 31, 2021 | |||||
17. | Aug 31, 2021 | |||||
18. | Sep 30, 2021 | |||||
19. | Oct 31, 2021 | |||||
20. | Nov 30, 2021 | |||||
21. | Dec 31, 2021 | |||||
22. | Jan 31, 2022 | |||||
23. | Feb 28, 2022 | |||||
24. | Mar 31, 2022 | |||||
25. | Apr 30, 2022 | |||||
26. | May 31, 2022 | |||||
27. | Jun 30, 2022 | |||||
28. | Jul 31, 2022 | |||||
29. | Aug 31, 2022 | |||||
30. | Sep 30, 2022 | |||||
31. | Oct 31, 2022 | |||||
32. | Nov 30, 2022 | |||||
33. | Dec 31, 2022 | |||||
Total (Σ): |
Show all
VarianceCARR = Σ(RCARR,t–RCARR)2 ÷ (33 – 1)
= ÷ (33 – 1)
=
VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (33 – 1)
= ÷ (33 – 1)
=
CovarianceCARR, S&P 500 = Σ(RCARR,t–RCARR)×(RS&P 500,t–RS&P 500) ÷ (33 – 1)
= ÷ (33 – 1)
=
Systematic Risk (β) Estimation
VarianceCARR | |
VarianceS&P 500 | |
CovarianceCARR, S&P 500 | |
Correlation coefficientCARR, S&P 5001 | |
βCARR2 | |
αCARR3 |
Calculations
1 Correlation coefficientCARR, S&P 500
= CovarianceCARR, S&P 500 ÷ (Standard deviationCARR × Standard deviationS&P 500)
= ÷ ( × )
=
2 βCARR
= CovarianceCARR, S&P 500 ÷ VarianceS&P 500
= ÷
=
3 αCARR
= AverageCARR – βCARR × 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 Carrier Global Corp. common stock | βCARR | |
Expected rate of return on Carrier Global Corp. common stock3 | E(RCARR) |
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(RCARR) = RF + βCARR [E(RM) – RF]
= + [ – ]
=