Stock Analysis on Net

Halliburton Co. (NYSE:HAL)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 13, 2019.

Capital Asset Pricing Model (CAPM)

Microsoft Excel

Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like Halliburton Co. common stock.

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Rates of Return

Halliburton Co., monthly rates of return

Microsoft Excel
Halliburton Co. (HAL) Standard & Poor’s 500 (S&P 500)
t Date PriceHAL,t1 DividendHAL,t1 RHAL,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2014
1. Feb 28, 2014
2. Mar 31, 2014
3. Apr 30, 2014
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2018
59. Dec 31, 2018
Average (R):
Standard deviation:
Halliburton Co. (HAL) Standard & Poor’s 500 (S&P 500)
t Date PriceHAL,t1 DividendHAL,t1 RHAL,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2014
1. Feb 28, 2014
2. Mar 31, 2014
3. Apr 30, 2014
4. May 31, 2014
5. Jun 30, 2014
6. Jul 31, 2014
7. Aug 31, 2014
8. Sep 30, 2014
9. Oct 31, 2014
10. Nov 30, 2014
11. Dec 31, 2014
12. Jan 31, 2015
13. Feb 28, 2015
14. Mar 31, 2015
15. Apr 30, 2015
16. May 31, 2015
17. Jun 30, 2015
18. Jul 31, 2015
19. Aug 31, 2015
20. Sep 30, 2015
21. Oct 31, 2015
22. Nov 30, 2015
23. Dec 31, 2015
24. Jan 31, 2016
25. Feb 29, 2016
26. Mar 31, 2016
27. Apr 30, 2016
28. May 31, 2016
29. Jun 30, 2016
30. Jul 31, 2016
31. Aug 31, 2016
32. Sep 30, 2016
33. Oct 31, 2016
34. Nov 30, 2016
35. Dec 31, 2016
36. Jan 31, 2017
37. Feb 28, 2017
38. Mar 31, 2017
39. Apr 30, 2017
40. May 31, 2017
41. Jun 30, 2017
42. Jul 31, 2017
43. Aug 31, 2017
44. Sep 30, 2017
45. Oct 31, 2017
46. Nov 30, 2017
47. Dec 31, 2017
48. Jan 31, 2018
49. Feb 28, 2018
50. Mar 31, 2018
51. Apr 30, 2018
52. May 31, 2018
53. Jun 30, 2018
54. Jul 31, 2018
55. Aug 31, 2018
56. Sep 30, 2018
57. Oct 31, 2018
58. Nov 30, 2018
59. Dec 31, 2018
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 HAL during period t

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


Variance and Covariance

Halliburton Co., calculation of variance and covariance of returns

Microsoft Excel
t Date RHAL,t RS&P 500,t (RHAL,tRHAL)2 (RS&P 500,tRS&P 500)2 (RHAL,tRHAL)×(RS&P 500,tRS&P 500)
1. Feb 28, 2014
2. Mar 31, 2014
3. Apr 30, 2014
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2018
59. Dec 31, 2018
Total (Σ):
t Date RHAL,t RS&P 500,t (RHAL,tRHAL)2 (RS&P 500,tRS&P 500)2 (RHAL,tRHAL)×(RS&P 500,tRS&P 500)
1. Feb 28, 2014
2. Mar 31, 2014
3. Apr 30, 2014
4. May 31, 2014
5. Jun 30, 2014
6. Jul 31, 2014
7. Aug 31, 2014
8. Sep 30, 2014
9. Oct 31, 2014
10. Nov 30, 2014
11. Dec 31, 2014
12. Jan 31, 2015
13. Feb 28, 2015
14. Mar 31, 2015
15. Apr 30, 2015
16. May 31, 2015
17. Jun 30, 2015
18. Jul 31, 2015
19. Aug 31, 2015
20. Sep 30, 2015
21. Oct 31, 2015
22. Nov 30, 2015
23. Dec 31, 2015
24. Jan 31, 2016
25. Feb 29, 2016
26. Mar 31, 2016
27. Apr 30, 2016
28. May 31, 2016
29. Jun 30, 2016
30. Jul 31, 2016
31. Aug 31, 2016
32. Sep 30, 2016
33. Oct 31, 2016
34. Nov 30, 2016
35. Dec 31, 2016
36. Jan 31, 2017
37. Feb 28, 2017
38. Mar 31, 2017
39. Apr 30, 2017
40. May 31, 2017
41. Jun 30, 2017
42. Jul 31, 2017
43. Aug 31, 2017
44. Sep 30, 2017
45. Oct 31, 2017
46. Nov 30, 2017
47. Dec 31, 2017
48. Jan 31, 2018
49. Feb 28, 2018
50. Mar 31, 2018
51. Apr 30, 2018
52. May 31, 2018
53. Jun 30, 2018
54. Jul 31, 2018
55. Aug 31, 2018
56. Sep 30, 2018
57. Oct 31, 2018
58. Nov 30, 2018
59. Dec 31, 2018
Total (Σ):

Show all

VarianceHAL = Σ(RHAL,tRHAL)2 ÷ (59 – 1)
= ÷ (59 – 1)
=

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

CovarianceHAL, S&P 500 = Σ(RHAL,tRHAL)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= ÷ (59 – 1)
=


Systematic Risk (β) Estimation

Microsoft Excel
VarianceHAL
VarianceS&P 500
CovarianceHAL, S&P 500
Correlation coefficientHAL, S&P 5001
βHAL2
αHAL3

Calculations

1 Correlation coefficientHAL, S&P 500
= CovarianceHAL, S&P 500 ÷ (Standard deviationHAL × Standard deviationS&P 500)
= ÷ ( × )
=

2 βHAL
= CovarianceHAL, S&P 500 ÷ VarianceS&P 500
= ÷
=

3 αHAL
= AverageHAL – βHAL × 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 Halliburton Co. common stock βHAL
 
Expected rate of return on Halliburton Co. common stock3 E(RHAL)

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(RHAL) = RF + βHAL [E(RM) – RF]
= + []
=