Beta Comparison of Risk Beta and Rate of Return within the CAPM and DGM

        It is analyzed that the beta for the company and those that are regarded as its competitors is given below and it can also be seen that this beta is depicted in terms of the potential response of the variation.

        It can be seen that the companies discussed above are the biggest companies that are competing Samsung in the given industry. It is also seen that there are companies having a very high beta, like Sony, and Apple, and some having a very low beta, like Nokia. In fact, Nokia has a negative beta that is close to zero, indicating that it has almost no impact of the market. It can be said that the HTC and Samsung have a beta that is close to 1 and it is the average (Atrill 2014).

Descriptive Statistics of Risk Beta and Rate of Return within the CAPM and DGM

        It can be seen that the this is the descriptive statistics of the stock of Samsung, S&P 500 and the treasury stock. It can be seen that the mean of stock is the highest and that of the market index, named S&P 500 is the lowest. Median is low for all the stocks denoting that there is a great variation in the stock. The kurtosis and skewness is both high for the stock indicating that there is a great potential in the company as it is positively skewed and the kurtosis is also high indicating there is a positive trend in the stock values and there is a great volatility in the prices of stock.

        The correlation between the index and the stock is weak and it is 4.56% variable. It can be said that the company has a low positive correlation and this is not effective in terms of correlating the factors and their productivity.

  Rate of return of Risk Beta and Rate of Return within the CAPM and DGM

The rate of return is calculated by

 It can be seen that the calculation is done by the following formula

    This indicates that the total rate of return is 0.11% for the company, this is the rate that determines the potential of the company, if this rate is higher, it can be said that the company is a good fit and should be invested in, and if this is low, like the one here, it is advised that this company should be put in the watch list and no investment should be made into it. In essence, it is denoted that the rate is low and in fact it is so low that the rate of return does not even cross the half of what is available in the industry.

Growth rate of Risk Beta and Rate of Return within the CAPM and DGM

    The growth rate is paid on dividends and it can be seen that the dividends are given for the five years, then the growth rate in determined, in essence the average rate is computed, after the computation, the dividend is computed, as per its recommendation, the dividend is then forecasted, this forecasted into the future, on discounting the dividends from the future the worth of the company or the intrinsic value of its stock is given.

    It can be seen that the growth in dividends is more than the growth in earnings, this is both beneficial and dangerous as it seems that the company is expanding its dividends without increasing its earnings respectively.

    In calculating intrinsic value, it seems that the company is calculating its value in terms of the local currency, after the intrinsic value is calculated it is compared to the market value and the decision resides with the value that is acquired at the end (Fridson and Alvarez 2011).

    This indicates that the market value of stock is very high as compared to the intrinsic value, so it is advised that the company should not be considered as an investment. It is also advised that the company is making progress but it is showing off more than the real deal.

References of Risk Beta and Rate of Return within the CAPM and DGM

Atrill, Peter. 2014. Financial Management for Decision Makers . 7. Pearson Higher Ed.

Fridson, Martin S., and Fernando Alvarez. 2011. Financial Statement Analysis: A Practitioner's Guide. John Wiley & Sons.