Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Edwards Lifesciences Corp. common stock.
Paying user area
Try for free
Edwards Lifesciences Corp. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Edwards Lifesciences Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Rates of Return
Edwards Lifesciences Corp. (EW) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceEW,t1 | DividendEW,t1 | REW,t2 | PriceS&P 500,t | RS&P 500,t3 |
Jan 31, 2017 | ||||||
1. | Feb 28, 2017 | |||||
2. | Mar 31, 2017 | |||||
3. | Apr 30, 2017 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
58. | Nov 30, 2021 | |||||
59. | Dec 31, 2021 | |||||
Average (R): | ||||||
Standard deviation: |
Edwards Lifesciences Corp. (EW) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceEW,t1 | DividendEW,t1 | REW,t2 | PriceS&P 500,t | RS&P 500,t3 |
Jan 31, 2017 | ||||||
1. | Feb 28, 2017 | |||||
2. | Mar 31, 2017 | |||||
3. | Apr 30, 2017 | |||||
4. | May 31, 2017 | |||||
5. | Jun 30, 2017 | |||||
6. | Jul 31, 2017 | |||||
7. | Aug 31, 2017 | |||||
8. | Sep 30, 2017 | |||||
9. | Oct 31, 2017 | |||||
10. | Nov 30, 2017 | |||||
11. | Dec 31, 2017 | |||||
12. | Jan 31, 2018 | |||||
13. | Feb 28, 2018 | |||||
14. | Mar 31, 2018 | |||||
15. | Apr 30, 2018 | |||||
16. | May 31, 2018 | |||||
17. | Jun 30, 2018 | |||||
18. | Jul 31, 2018 | |||||
19. | Aug 31, 2018 | |||||
20. | Sep 30, 2018 | |||||
21. | Oct 31, 2018 | |||||
22. | Nov 30, 2018 | |||||
23. | Dec 31, 2018 | |||||
24. | Jan 31, 2019 | |||||
25. | Feb 28, 2019 | |||||
26. | Mar 31, 2019 | |||||
27. | Apr 30, 2019 | |||||
28. | May 31, 2019 | |||||
29. | Jun 30, 2019 | |||||
30. | Jul 31, 2019 | |||||
31. | Aug 31, 2019 | |||||
32. | Sep 30, 2019 | |||||
33. | Oct 31, 2019 | |||||
34. | Nov 30, 2019 | |||||
35. | Dec 31, 2019 | |||||
36. | Jan 31, 2020 | |||||
37. | Feb 29, 2020 | |||||
38. | Mar 31, 2020 | |||||
39. | Apr 30, 2020 | |||||
40. | May 31, 2020 | |||||
41. | Jun 30, 2020 | |||||
42. | Jul 31, 2020 | |||||
43. | Aug 31, 2020 | |||||
44. | Sep 30, 2020 | |||||
45. | Oct 31, 2020 | |||||
46. | Nov 30, 2020 | |||||
47. | Dec 31, 2020 | |||||
48. | Jan 31, 2021 | |||||
49. | Feb 28, 2021 | |||||
50. | Mar 31, 2021 | |||||
51. | Apr 30, 2021 | |||||
52. | May 31, 2021 | |||||
53. | Jun 30, 2021 | |||||
54. | Jul 31, 2021 | |||||
55. | Aug 31, 2021 | |||||
56. | Sep 30, 2021 | |||||
57. | Oct 31, 2021 | |||||
58. | Nov 30, 2021 | |||||
59. | Dec 31, 2021 | |||||
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 EW during period t
3 Rate of return on S&P 500 (the market portfolio proxy) during period t
Variance and Covariance
t | Date | REW,t | RS&P 500,t | (REW,t–REW)2 | (RS&P 500,t–RS&P 500)2 | (REW,t–REW)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Feb 28, 2017 | |||||
2. | Mar 31, 2017 | |||||
3. | Apr 30, 2017 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
58. | Nov 30, 2021 | |||||
59. | Dec 31, 2021 | |||||
Total (Σ): |
t | Date | REW,t | RS&P 500,t | (REW,t–REW)2 | (RS&P 500,t–RS&P 500)2 | (REW,t–REW)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Feb 28, 2017 | |||||
2. | Mar 31, 2017 | |||||
3. | Apr 30, 2017 | |||||
4. | May 31, 2017 | |||||
5. | Jun 30, 2017 | |||||
6. | Jul 31, 2017 | |||||
7. | Aug 31, 2017 | |||||
8. | Sep 30, 2017 | |||||
9. | Oct 31, 2017 | |||||
10. | Nov 30, 2017 | |||||
11. | Dec 31, 2017 | |||||
12. | Jan 31, 2018 | |||||
13. | Feb 28, 2018 | |||||
14. | Mar 31, 2018 | |||||
15. | Apr 30, 2018 | |||||
16. | May 31, 2018 | |||||
17. | Jun 30, 2018 | |||||
18. | Jul 31, 2018 | |||||
19. | Aug 31, 2018 | |||||
20. | Sep 30, 2018 | |||||
21. | Oct 31, 2018 | |||||
22. | Nov 30, 2018 | |||||
23. | Dec 31, 2018 | |||||
24. | Jan 31, 2019 | |||||
25. | Feb 28, 2019 | |||||
26. | Mar 31, 2019 | |||||
27. | Apr 30, 2019 | |||||
28. | May 31, 2019 | |||||
29. | Jun 30, 2019 | |||||
30. | Jul 31, 2019 | |||||
31. | Aug 31, 2019 | |||||
32. | Sep 30, 2019 | |||||
33. | Oct 31, 2019 | |||||
34. | Nov 30, 2019 | |||||
35. | Dec 31, 2019 | |||||
36. | Jan 31, 2020 | |||||
37. | Feb 29, 2020 | |||||
38. | Mar 31, 2020 | |||||
39. | Apr 30, 2020 | |||||
40. | May 31, 2020 | |||||
41. | Jun 30, 2020 | |||||
42. | Jul 31, 2020 | |||||
43. | Aug 31, 2020 | |||||
44. | Sep 30, 2020 | |||||
45. | Oct 31, 2020 | |||||
46. | Nov 30, 2020 | |||||
47. | Dec 31, 2020 | |||||
48. | Jan 31, 2021 | |||||
49. | Feb 28, 2021 | |||||
50. | Mar 31, 2021 | |||||
51. | Apr 30, 2021 | |||||
52. | May 31, 2021 | |||||
53. | Jun 30, 2021 | |||||
54. | Jul 31, 2021 | |||||
55. | Aug 31, 2021 | |||||
56. | Sep 30, 2021 | |||||
57. | Oct 31, 2021 | |||||
58. | Nov 30, 2021 | |||||
59. | Dec 31, 2021 | |||||
Total (Σ): |
Show all
VarianceEW = Σ(REW,t–REW)2 ÷ (59 – 1)
= ÷ (59 – 1)
=
VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (59 – 1)
= ÷ (59 – 1)
=
CovarianceEW, S&P 500 = Σ(REW,t–REW)×(RS&P 500,t–RS&P 500) ÷ (59 – 1)
= ÷ (59 – 1)
=
Systematic Risk (β) Estimation
VarianceEW | |
VarianceS&P 500 | |
CovarianceEW, S&P 500 | |
Correlation coefficientEW, S&P 5001 | |
βEW2 | |
αEW3 |
Calculations
1 Correlation coefficientEW, S&P 500
= CovarianceEW, S&P 500 ÷ (Standard deviationEW × Standard deviationS&P 500)
= ÷ ( × )
=
2 βEW
= CovarianceEW, S&P 500 ÷ VarianceS&P 500
= ÷
=
3 αEW
= AverageEW – βEW × 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 Edwards Lifesciences Corp. common stock | βEW | |
Expected rate of return on Edwards Lifesciences Corp. common stock3 | E(REW) |
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(REW) = RF + βEW [E(RM) – RF]
= + [ – ]
=