Stock Analysis on Net
Stock Analysis on Net

Monsanto Co. (NYSE:MON)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 5, 2018.

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 Monsanto Co. common stock.

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Rates of Return

Monsanto Co., monthly rates of return

Microsoft Excel
Monsanto Co. (MON) Standard & Poor’s 500 (S&P 500)
t Date PriceMON,t1 DividendMON,t1 RMON,t2 PriceS&P 500,t RS&P 500,t3
Sep 30, 2011
1. Oct 31, 2011
2. Nov 30, 2011
3. Dec 31, 2011
. . . . . . .
. . . . . . .
. . . . . . .
70. Jul 31, 2017
71. Aug 31, 2017
Average (R):
Standard deviation:
Monsanto Co. (MON) Standard & Poor’s 500 (S&P 500)
t Date PriceMON,t1 DividendMON,t1 RMON,t2 PriceS&P 500,t RS&P 500,t3
Sep 30, 2011
1. Oct 31, 2011
2. Nov 30, 2011
3. Dec 31, 2011
4. Jan 31, 2012
5. Feb 29, 2012
6. Mar 31, 2012
7. Apr 30, 2012
8. May 31, 2012
9. Jun 30, 2012
10. Jul 31, 2012
11. Aug 31, 2012
12. Sep 30, 2012
13. Oct 31, 2012
14. Nov 30, 2012
15. Dec 31, 2012
16. Jan 31, 2013
17. Feb 28, 2013
18. Mar 31, 2013
19. Apr 30, 2013
20. May 31, 2013
21. Jun 30, 2013
22. Jul 31, 2013
23. Aug 31, 2013
24. Sep 30, 2013
25. Oct 31, 2013
26. Nov 30, 2013
27. Dec 31, 2013
28. Jan 31, 2014
29. Feb 28, 2014
30. Mar 31, 2014
31. Apr 30, 2014
32. May 31, 2014
33. Jun 30, 2014
34. Jul 31, 2014
35. Aug 31, 2014
36. Sep 30, 2014
37. Oct 31, 2014
38. Nov 30, 2014
39. Dec 31, 2014
40. Jan 31, 2015
41. Feb 28, 2015
42. Mar 31, 2015
43. Apr 30, 2015
44. May 31, 2015
45. Jun 30, 2015
46. Jul 31, 2015
47. Aug 31, 2015
48. Sep 30, 2015
49. Oct 31, 2015
50. Nov 30, 2015
51. Dec 31, 2015
52. Jan 31, 2016
53. Feb 29, 2016
54. Mar 31, 2016
55. Apr 30, 2016
56. May 31, 2016
57. Jun 30, 2016
58. Jul 31, 2016
59. Aug 31, 2016
60. Sep 30, 2016
61. Oct 31, 2016
62. Nov 30, 2016
63. Dec 31, 2016
64. Jan 31, 2017
65. Feb 28, 2017
66. Mar 31, 2017
67. Apr 30, 2017
68. May 31, 2017
69. Jun 30, 2017
70. Jul 31, 2017
71. Aug 31, 2017
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 MON during period t

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

Variance and Covariance

Monsanto Co., calculation of variance and covariance of returns

Microsoft Excel
t Date RMON,t RS&P 500,t (RMON,t–RMON)2 (RS&P 500,t–RS&P 500)2 (RMON,t–RMON)×(RS&P 500,t–RS&P 500)
1. Oct 31, 2011
2. Nov 30, 2011
3. Dec 31, 2011
. . . . . . .
. . . . . . .
. . . . . . .
70. Jul 31, 2017
71. Aug 31, 2017
Total (Σ):
t Date RMON,t RS&P 500,t (RMON,t–RMON)2 (RS&P 500,t–RS&P 500)2 (RMON,t–RMON)×(RS&P 500,t–RS&P 500)
1. Oct 31, 2011
2. Nov 30, 2011
3. Dec 31, 2011
4. Jan 31, 2012
5. Feb 29, 2012
6. Mar 31, 2012
7. Apr 30, 2012
8. May 31, 2012
9. Jun 30, 2012
10. Jul 31, 2012
11. Aug 31, 2012
12. Sep 30, 2012
13. Oct 31, 2012
14. Nov 30, 2012
15. Dec 31, 2012
16. Jan 31, 2013
17. Feb 28, 2013
18. Mar 31, 2013
19. Apr 30, 2013
20. May 31, 2013
21. Jun 30, 2013
22. Jul 31, 2013
23. Aug 31, 2013
24. Sep 30, 2013
25. Oct 31, 2013
26. Nov 30, 2013
27. Dec 31, 2013
28. Jan 31, 2014
29. Feb 28, 2014
30. Mar 31, 2014
31. Apr 30, 2014
32. May 31, 2014
33. Jun 30, 2014
34. Jul 31, 2014
35. Aug 31, 2014
36. Sep 30, 2014
37. Oct 31, 2014
38. Nov 30, 2014
39. Dec 31, 2014
40. Jan 31, 2015
41. Feb 28, 2015
42. Mar 31, 2015
43. Apr 30, 2015
44. May 31, 2015
45. Jun 30, 2015
46. Jul 31, 2015
47. Aug 31, 2015
48. Sep 30, 2015
49. Oct 31, 2015
50. Nov 30, 2015
51. Dec 31, 2015
52. Jan 31, 2016
53. Feb 29, 2016
54. Mar 31, 2016
55. Apr 30, 2016
56. May 31, 2016
57. Jun 30, 2016
58. Jul 31, 2016
59. Aug 31, 2016
60. Sep 30, 2016
61. Oct 31, 2016
62. Nov 30, 2016
63. Dec 31, 2016
64. Jan 31, 2017
65. Feb 28, 2017
66. Mar 31, 2017
67. Apr 30, 2017
68. May 31, 2017
69. Jun 30, 2017
70. Jul 31, 2017
71. Aug 31, 2017
Total (Σ):

Show all

VarianceMON = Σ(RMON,t–RMON)2 ÷ (71 – 1)
= ÷ (71 – 1)
=

VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (71 – 1)
= ÷ (71 – 1)
=

CovarianceMON, S&P 500 = Σ(RMON,t–RMON)×(RS&P 500,t–RS&P 500) ÷ (71 – 1)
= ÷ (71 – 1)
=

Systematic Risk (β) Estimation

Microsoft Excel
VarianceMON
VarianceS&P 500
CovarianceMON, S&P 500
Correlation coefficientMON, S&P 5001
βMON2
αMON3

Calculations

1 Correlation coefficientMON, S&P 500
= CovarianceMON, S&P 500 ÷ (Standard deviationMON × Standard deviationS&P 500)
= ÷ ( × )
=

2 βMON
= CovarianceMON, S&P 500 ÷ VarianceS&P 500
= ÷
=

3 αMON
= AverageMON – βMON × 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 Monsanto Co. common stock βMON
 
Expected rate of return on Monsanto Co. common stock3 E(RMON)

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(RMON) = RF + βMON [E(RM) – RF]
= + [ – ]
=