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The risk free rate is estimated by the Australian government 10 year Treasury note rate. This is because the return on government debt securities is generally considered to be close to riskless.
d. Australia government rate is chosen rather than NSW Treasury Corporation rate is because PMP Ltd is an Australian wide corporation, it is not only operate in NSW and so as the stock market, therefore in order to get consistency of the stock and rate we use Australia government rate...
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Australia government rate is chosen rather than NSW Treasury Corporation rate is because PMP Ltd is an Australian wide corporation, it is not only operate in NSW and so as the stock market, therefore in order to get consistency of the stock and rate we use Australia government rate.
To calculate beta, we get stock return by the formula return of stock and index = (closing price â opening price)/ opening price, the monthly bond return, can be calculated by dividing 10 year bond rate by 12, Excess stock return can be calculated by stock return minus index return, Excess index return can be calculated by index return minus monthly bond return...
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