Capital asset pricing model (CAPM) indicates what should be the expected or required rate of return on risky assets like ONEOK Inc. common stock.
Paying user area
Try for free
ONEOK Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to ONEOK Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Rates of Return
ONEOK Inc. (OKE) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceOKE,t1 | DividendOKE,t1 | ROKE,t2 | PriceS&P 500,t | RS&P 500,t3 |
Jan 31, 2018 | ||||||
1. | Feb 28, 2018 | |||||
2. | Mar 31, 2018 | |||||
3. | Apr 30, 2018 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
58. | Nov 30, 2022 | |||||
59. | Dec 31, 2022 | |||||
Average (R): | ||||||
Standard deviation: |
ONEOK Inc. (OKE) | Standard & Poor’s 500 (S&P 500) | |||||
---|---|---|---|---|---|---|
t | Date | PriceOKE,t1 | DividendOKE,t1 | ROKE,t2 | PriceS&P 500,t | RS&P 500,t3 |
Jan 31, 2018 | ||||||
1. | Feb 28, 2018 | |||||
2. | Mar 31, 2018 | |||||
3. | Apr 30, 2018 | |||||
4. | May 31, 2018 | |||||
5. | Jun 30, 2018 | |||||
6. | Jul 31, 2018 | |||||
7. | Aug 31, 2018 | |||||
8. | Sep 30, 2018 | |||||
9. | Oct 31, 2018 | |||||
10. | Nov 30, 2018 | |||||
11. | Dec 31, 2018 | |||||
12. | Jan 31, 2019 | |||||
13. | Feb 28, 2019 | |||||
14. | Mar 31, 2019 | |||||
15. | Apr 30, 2019 | |||||
16. | May 31, 2019 | |||||
17. | Jun 30, 2019 | |||||
18. | Jul 31, 2019 | |||||
19. | Aug 31, 2019 | |||||
20. | Sep 30, 2019 | |||||
21. | Oct 31, 2019 | |||||
22. | Nov 30, 2019 | |||||
23. | Dec 31, 2019 | |||||
24. | Jan 31, 2020 | |||||
25. | Feb 29, 2020 | |||||
26. | Mar 31, 2020 | |||||
27. | Apr 30, 2020 | |||||
28. | May 31, 2020 | |||||
29. | Jun 30, 2020 | |||||
30. | Jul 31, 2020 | |||||
31. | Aug 31, 2020 | |||||
32. | Sep 30, 2020 | |||||
33. | Oct 31, 2020 | |||||
34. | Nov 30, 2020 | |||||
35. | Dec 31, 2020 | |||||
36. | Jan 31, 2021 | |||||
37. | Feb 28, 2021 | |||||
38. | Mar 31, 2021 | |||||
39. | Apr 30, 2021 | |||||
40. | May 31, 2021 | |||||
41. | Jun 30, 2021 | |||||
42. | Jul 31, 2021 | |||||
43. | Aug 31, 2021 | |||||
44. | Sep 30, 2021 | |||||
45. | Oct 31, 2021 | |||||
46. | Nov 30, 2021 | |||||
47. | Dec 31, 2021 | |||||
48. | Jan 31, 2022 | |||||
49. | Feb 28, 2022 | |||||
50. | Mar 31, 2022 | |||||
51. | Apr 30, 2022 | |||||
52. | May 31, 2022 | |||||
53. | Jun 30, 2022 | |||||
54. | Jul 31, 2022 | |||||
55. | Aug 31, 2022 | |||||
56. | Sep 30, 2022 | |||||
57. | Oct 31, 2022 | |||||
58. | Nov 30, 2022 | |||||
59. | 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 OKE during period t
3 Rate of return on S&P 500 (the market portfolio proxy) during period t
Variance and Covariance
t | Date | ROKE,t | RS&P 500,t | (ROKE,t–ROKE)2 | (RS&P 500,t–RS&P 500)2 | (ROKE,t–ROKE)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Feb 28, 2018 | |||||
2. | Mar 31, 2018 | |||||
3. | Apr 30, 2018 | |||||
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
. | . | . | . | . | . | . |
58. | Nov 30, 2022 | |||||
59. | Dec 31, 2022 | |||||
Total (Σ): |
t | Date | ROKE,t | RS&P 500,t | (ROKE,t–ROKE)2 | (RS&P 500,t–RS&P 500)2 | (ROKE,t–ROKE)×(RS&P 500,t–RS&P 500) |
---|---|---|---|---|---|---|
1. | Feb 28, 2018 | |||||
2. | Mar 31, 2018 | |||||
3. | Apr 30, 2018 | |||||
4. | May 31, 2018 | |||||
5. | Jun 30, 2018 | |||||
6. | Jul 31, 2018 | |||||
7. | Aug 31, 2018 | |||||
8. | Sep 30, 2018 | |||||
9. | Oct 31, 2018 | |||||
10. | Nov 30, 2018 | |||||
11. | Dec 31, 2018 | |||||
12. | Jan 31, 2019 | |||||
13. | Feb 28, 2019 | |||||
14. | Mar 31, 2019 | |||||
15. | Apr 30, 2019 | |||||
16. | May 31, 2019 | |||||
17. | Jun 30, 2019 | |||||
18. | Jul 31, 2019 | |||||
19. | Aug 31, 2019 | |||||
20. | Sep 30, 2019 | |||||
21. | Oct 31, 2019 | |||||
22. | Nov 30, 2019 | |||||
23. | Dec 31, 2019 | |||||
24. | Jan 31, 2020 | |||||
25. | Feb 29, 2020 | |||||
26. | Mar 31, 2020 | |||||
27. | Apr 30, 2020 | |||||
28. | May 31, 2020 | |||||
29. | Jun 30, 2020 | |||||
30. | Jul 31, 2020 | |||||
31. | Aug 31, 2020 | |||||
32. | Sep 30, 2020 | |||||
33. | Oct 31, 2020 | |||||
34. | Nov 30, 2020 | |||||
35. | Dec 31, 2020 | |||||
36. | Jan 31, 2021 | |||||
37. | Feb 28, 2021 | |||||
38. | Mar 31, 2021 | |||||
39. | Apr 30, 2021 | |||||
40. | May 31, 2021 | |||||
41. | Jun 30, 2021 | |||||
42. | Jul 31, 2021 | |||||
43. | Aug 31, 2021 | |||||
44. | Sep 30, 2021 | |||||
45. | Oct 31, 2021 | |||||
46. | Nov 30, 2021 | |||||
47. | Dec 31, 2021 | |||||
48. | Jan 31, 2022 | |||||
49. | Feb 28, 2022 | |||||
50. | Mar 31, 2022 | |||||
51. | Apr 30, 2022 | |||||
52. | May 31, 2022 | |||||
53. | Jun 30, 2022 | |||||
54. | Jul 31, 2022 | |||||
55. | Aug 31, 2022 | |||||
56. | Sep 30, 2022 | |||||
57. | Oct 31, 2022 | |||||
58. | Nov 30, 2022 | |||||
59. | Dec 31, 2022 | |||||
Total (Σ): |
Show all
VarianceOKE = Σ(ROKE,t–ROKE)2 ÷ (59 – 1)
= ÷ (59 – 1)
=
VarianceS&P 500 = Σ(RS&P 500,t–RS&P 500)2 ÷ (59 – 1)
= ÷ (59 – 1)
=
CovarianceOKE, S&P 500 = Σ(ROKE,t–ROKE)×(RS&P 500,t–RS&P 500) ÷ (59 – 1)
= ÷ (59 – 1)
=
Systematic Risk (β) Estimation
VarianceOKE | |
VarianceS&P 500 | |
CovarianceOKE, S&P 500 | |
Correlation coefficientOKE, S&P 5001 | |
βOKE2 | |
αOKE3 |
Calculations
1 Correlation coefficientOKE, S&P 500
= CovarianceOKE, S&P 500 ÷ (Standard deviationOKE × Standard deviationS&P 500)
= ÷ ( × )
=
2 βOKE
= CovarianceOKE, S&P 500 ÷ VarianceS&P 500
= ÷
=
3 αOKE
= AverageOKE – βOKE × 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 ONEOK Inc. common stock | βOKE | |
Expected rate of return on ONEOK Inc. common stock3 | E(ROKE) |
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(ROKE) = RF + βOKE [E(RM) – RF]
= + [ – ]
=