Walmart company limited

Monthly return rates

Walmart Inc. (WMT)
t Date Price(WMT, t) Dividend(WMT, t) R(WMT, t)
28-Feb-15 83.9300
1 31-Mar-15 82.2500 0.4900 -1.4200%
2 30-Apr-15 78.0500 -5.1100%
3 31-May-15 74.2700 0.4900 -4.2200%
4 30-Jun-15 70.9300 -4.5000%
5 31-Jul-15 71.9800 1.4800%
6 31-Aug-15 64.7300 0.4900 -9.3900%
7 30-Sep-15 64.8400 0.1700%
8 31-Oct-15 57.2400 -11.7200%
9 30-Nov-15 58.8400 2.8000%
10 31-Dec-15 61.3000 0.4900 5.0100%
11 31-Jan-16 66.3600 8.2500%
12 29-Feb-16 66.3400 -0.0300%
13 31-Mar-16 68.4900 0.5000 3.9900%
14 30-Apr-16 66.8700 -2.3700%
15 31-May-16 70.7800 0.5000 6.5900%
16 30-Jun-16 73.0200 3.1600%
17 31-Jul-16 72.9700 -0.0700%
18 31-Aug-16 71.4400 0.5000 -1.4100%
19 30-Sep-16 72.1200 0.9500%
20 31-Oct-16 70.0200 -2.9100%
21 30-Nov-16 70.4300 0.5900%
22 31-Dec-16 69.1200 0.5000 -1.1500%
23 31-Jan-17 66.7400 -3.4400%
24 28-Feb-17 70.9300 6.2800%
25 31-Mar-17 72.0800 0.5100 2.3400%
26 30-Apr-17 75.1800 4.3000%
27 31-May-17 78.6000 0.5100 5.2300%
28 30-Jun-17 75.6800 -3.7200%
29 31-Jul-17 79.9900 5.7000%
30 31-Aug-17 78.0700 0.5100 -1.7600%
31 30-Sep-17 78.1400 0.0900%
32 31-Oct-17 87.3100 11.7400%
33 30-Nov-17 97.2300 11.3600%
34 31-Dec-17 98.7500 0.5100 2.0900%
35 31-Jan-18 106.6000 7.9500%
36 28-Feb-18 90.0100 -15.5600%
37 31-Mar-18 88.9700 0.5200 -0.5800%
38 30-Apr-18 88.4600 -0.5700%
39 31-May-18 82.5400 0.5200 -6.1000%
40 30-Jun-18 85.6500 3.7700%
41 31-Jul-18 89.2300 4.1800%
42 31-Aug-18 95.8600 0.5200 8.0100%
43 30-Sep-18 93.9100 -2.0300%
44 31-Oct-18 100.2800 6.7800%
45 30-Nov-18 97.6500 -2.6200%
46 31-Dec-18 93.1500 0.5200 -4.0800%
47 31-Jan-19 95.8300 2.8800%
48 28-Feb-19 98.9900 3.3000%
49 31-Mar-19 97.5300 0.5300 -0.9400%
50 30-Apr-19 102.8400 5.4400%
51 31-May-19 101.4400 0.5300 -0.8500%
52 30-Jun-19 110.4900 8.9200%
53 31-Jul-19 110.3800 -0.1000%
54 31-Aug-19 114.2600 0.5300 4.0000%
55 30-Sep-19 118.6800 3.8700%
56 31-Oct-19 117.2600 -1.2000%
57 30-Nov-19 119.0900 1.5600%
58 31-Dec-19 118.8400 0.5300 0.2400%
59 31-Jan-20 114.4900 -3.6600%
60 29-Feb-20 107.6800 -5.9500%
61 31-Mar-20 113.6200 0.5400 6.0200%
62 30-Apr-20 121.5500 6.9800%
63 31-May-20 124.0600 0.5400 2.5100%
64 30-Jun-20 119.7800 -3.4500%
65 31-Jul-20 129.4000 8.0300%
66 31-Aug-20 138.8500 0.5400 7.7200%
67 30-Sep-20 139.9100 0.7600%
68 31-Oct-20 138.7500 -0.8300%
69 30-Nov-20 152.7900 10.1200%
70 31-Dec-20 144.1500 0.5400 -5.3000%
71 31-Jan-21 140.4900 -2.5400%
Average (R̅): 1.0600%
Standard deviation: 5.2300%
 Standard & Poor’s 500 (S&P 500)
Price(S&P 500, t) R(S&P 500, t)
2,104.5000
2,067.8900 -1.740%
2,085.5100 0.850%
2,107.3900 1.050%
2,063.1100 -2.100%
2,103.8400 1.970%
1,972.1800 -6.260%
1,920.0300 -2.640%
2,079.3600 8.300%
2,080.4100 0.050%
2,043.9400 -1.750%
1,940.2400 -5.070%
1,932.2300 -0.410%
2,059.7400 6.600%
2,065.3000 0.270%
2,096.9500 1.530%
2,098.8600 0.090%
2,173.6000 3.560%
2,170.9500 -0.120%
2,168.2700 -0.120%
2,126.1500 -1.940%
2,198.8100 3.420%
2,238.8300 1.820%
2,278.8700 1.790%
2,363.6400 3.720%
2,362.7200 -0.040%
2,384.2000 0.910%
2,411.8000 1.160%
2,423.4100 0.480%
2,470.3000 1.930%
2,471.6500 0.050%
2,519.3600 1.930%
2,575.2600 2.220%
2,647.5800 2.810%
2,673.6100 0.980%
2,823.8100 5.620%
2,713.8300 -3.890%
2,640.8700 -2.690%
2,648.0500 0.270%
2,705.2700 2.160%
2,718.3700 0.480%
2,816.2900 3.600%
2,901.5200 3.030%
2,913.9800 0.430%
2,711.7400 -6.940%
2,760.1700 1.790%
2,506.8500 -9.180%
2,704.1000 7.870%
2,784.4900 2.970%
2,834.4000 1.790%
2,945.8300 3.930%
2,752.0600 -6.580%
2,941.7600 6.890%
2,980.3800 1.310%
2,926.4600 -1.810%
2,976.7400 1.720%
3,037.5600 2.040%
3,140.9800 3.400%
3,230.7800 2.860%
3,225.5200 -0.160%
2,954.2200 -8.410%
2,584.5900 -12.510%
2,912.4300 12.680%
3,044.3100 4.530%
3,100.2900 1.840%
3,271.1200 5.510%
3,500.3100 7.010%
3,363.0000 -3.920%
3,269.9600 -2.770%
3,621.6300 10.750%
3,756.0700 3.710%
3,714.2400 -1.110%
0.890%
4.300%
Walmart company
variance and covariance of returns
t Date R(WMT, t) R(S&P 500, t) (R(WMT, t) –
R̅(WMT))2

1 31-Mar-15 -1.4200% -1.7400% 6.1600

2 30-Apr-15 -5.1100% 0.8500% 38.0800
3 31-May-15 -4.2200% 1.0500% 27.8800
4 30-Jun-15 -4.5000% -2.1000% 30.9300
5 31-Jul-15 1.4800% 1.9700% 0.1700
6 31-Aug-15 -9.3900% -6.2600% 109.3300
7 30-Sep-15 0.1700% -2.6400% 0.8000
8 31-Oct-15 -11.7200% 8.3000% 163.4800
9 30-Nov-15 2.8000% 0.0500% 3.0000
10 31-Dec-15 5.0100% -1.7500% 15.5900
11 31-Jan-16 8.2500% -5.0700% 51.6900
12 29-Feb-16 -0.0300% -0.4100% 1.2000
13 31-Mar-16 3.9900% 6.6000% 8.5800
14 30-Apr-16 -2.3700% 0.2700% 11.7600
15 31-May-16 6.5900% 1.5300% 30.5800
16 30-Jun-16 3.1600% 0.0900% 4.4100
17 31-Jul-16 -0.0700% 3.5600% 1.2800
18 31-Aug-16 -1.4100% -0.1200% 6.1300
19 30-Sep-16 0.9500% -0.1200% 0.0100
20 31-Oct-16 -2.9100% -1.9400% 15.8100
21 30-Nov-16 0.5900% 3.4200% 0.2300
22 31-Dec-16 -1.1500% 1.8200% 4.9000
23 31-Jan-17 -3.4400% 1.7900% 20.3200
24 28-Feb-17 6.2800% 3.7200% 27.1800
25 31-Mar-17 2.3400% -0.0400% 1.6300
26 30-Apr-17 4.3000% 0.9100% 10.4700
27 31-May-17 5.2300% 1.1600% 17.3300
28 30-Jun-17 -3.7200% 0.4800% 22.8400
29 31-Jul-17 5.7000% 1.9300% 21.4400
30 31-Aug-17 -1.7600% 0.0500% 7.9900
31 30-Sep-17 0.0900% 1.9300% 0.9500
32 31-Oct-17 11.7400% 2.2200% 113.8600
33 30-Nov-17 11.3600% 2.8100% 106.0300
34 31-Dec-17 2.0900% 0.9800% 1.0500
35 31-Jan-18 7.9500% 5.6200% 47.4000
36 28-Feb-18 -15.5600% -3.8900% 276.4700
37 31-Mar-18 -0.5800% -2.6900% 2.7000
38 30-Apr-18 -0.5700% 0.2700% 2.6800
39 31-May-18 -6.1000% 2.1600% 51.4000
40 30-Jun-18 3.7700% 0.4800% 7.3100
41 31-Jul-18 4.1800% 3.6000% 9.7000
42 31-Aug-18 8.0100% 3.0300% 48.2800
43 30-Sep-18 -2.0300% 0.4300% 9.6000
44 31-Oct-18 6.7800% -6.9400% 32.7000
45 30-Nov-18 -2.6200% 1.7900% 13.6000
46 31-Dec-18 -4.0800% -9.1800% 26.4200
47 31-Jan-19 2.8800% 7.8700% 3.2900
48 28-Feb-19 3.3000% 2.9700% 4.9900
49 31-Mar-19 -0.9400% 1.7900% 4.0200
50 30-Apr-19 5.4400% 3.9300% 19.1800
51 31-May-19 -0.8500% -6.5800% 3.6500
52 30-Jun-19 8.9200% 6.8900% 61.7300
53 31-Jul-19 -0.1000% 1.3100% 1.3600
54 31-Aug-19 4.0000% -1.8100% 8.5900
55 30-Sep-19 3.8700% 1.7200% 7.8600
56 31-Oct-19 -1.2000% 2.0400% 5.1100
57 30-Nov-19 1.5600% 3.4000% 0.2500
58 31-Dec-19 0.2400% 2.8600% 0.6900
59 31-Jan-20 -3.6600% -0.1600% 22.3300
60 29-Feb-20 -5.9500% -8.4100% 49.1800
61 31-Mar-20 6.0200% -12.5100% 24.5300
62 30-Apr-20 6.9800% 12.6800% 34.9800
63 31-May-20 2.5100% 4.5300% 2.0900
64 30-Jun-20 -3.4500% 1.8400% 20.3800
65 31-Jul-20 8.0300% 5.5100% 48.5400
66 31-Aug-20 7.7200% 7.0100% 44.3000
67 30-Sep-20 0.7600% -3.9200% 0.0900
68 31-Oct-20 -0.8300% -2.7700% 3.5900
69 30-Nov-20 10.1200% 10.7500% 81.9800
70 31-Dec-20 -5.3000% 3.7100% 40.5300
71 31-Jan-21 -2.5400% -1.1100% 12.9900
Total (Σ): 1,917.6000
(R(S&P 500, t) – (R(WMT, t) –
R̅(S&P 500))2 R̅(WMT)) × (R(S&P
500, t) – R̅(S&P
500))
6.9400 6.5400
0.2600
0.0200 (0.8200)
8.9800 16.6600
1.1700 0.4500
51.1600 74.7900
12.5200 3.1700
54.8100 (94.6600)
0.7100 (1.4600)
7.0100 (10.4600)
35.6200 (42.9100)
1.7100 1.4300
32.5400 16.7100
0.3900 2.1400
0.4100 3.5300
0.6500 (1.6900)
7.1100 (3.0200)
1.0300 2.5200
1.0400 0.1100
8.0500 11.2800
6.3600 (1.2100)
0.8600 (2.0500)
0.8000 (4.0300)
7.9800 14.7300
0.8700 (1.1900)
0.0500
0.0700 1.0900
0.1700 1.9800
1.0800 4.8200
0.7100 2.3800
1.0700 (1.0100)
1.7500 14.1300
3.6600 19.7000
0.0100 0.0900
22.3100 32.5200
22.9400 79.6400
12.8400 5.8800
 0.3900 1.0200
1.6000 (9.0800)
0.1700 (1.1100)
7.3300 8.4300
4.5400 14.8100
0.2200 1.4400
61.3900 (44.8000)
0.7900 (3.2900)
101.4500 51.7800
48.6300 12.6400
4.3200 4.6400
0.8100 (1.8000)
9.2200 13.3000
55.8400 14.2800
35.9800 47.1300
0.1700 (0.4900)
7.3100 (7.9200)
0.6800 2.3100
1.3200 (2.6000)
6.3000 1.2500
3.8600 (1.6300)
1.1200 5.0000
86.6000 65.2600
179.7400 (66.4100)
139.0000 69.7300
13.2000 5.2500
0.8900 (4.2600)
21.3000 32.1500
37.3500 40.6800
23.2100 1.4500
13.4100 6.9300
97.2200 89.2700
7.9400 (17.9400)
4.0300 7.2400
1,292.6800 486.7700
Walmart Inc.
Systematic risk (β) estimation
Variance(WMT) $27.3900
Variance(S&P 500) $18.4700
Covariance(WMT, S&P 500) $6.9500
Correlation coefficient(WMT, S&P 500) $0.3100
β(WMT) $0.3800
α(WMT) 0.73%
Walmart Inc.
Expected rate of return

Assumptions
Rate of return on LT Treasury Composite R(F)
Expected rate of return on market portfolio E[R(M)]
Systematic risk (β) of Walmart Inc.’s common stock β(WMT)

Expected rate of return on Walmart Inc.’s common stock E[R(WMT)]

E(RWMT) = RF + βWMT [E(RM) – RF]

= 2.16% + 0.38 [11.73% – 2.16%]
= 5.76%
 2.1600%
11.7300%
38.0000%

5.7600%