is 7.61. Average daily trading volumes for Ford are 4,022,000 shares.A regression analysis of Ford produces a beta of 1.0151. This beta appears correct when compared with well-known financial news providers’ estimates. Data from the last two years, most recently being January 1st, was used to find a market return of 20.90% and a risk-free rate of 1.49%. Inserting these numbers into the Capital Asset Pricing Model (CAPM), a resulting stock price of $52.81 emerges. Using published betas for a comparison reference, the CAPM produces stock values between $37.61 and $54.38 and a weighted-average of $50.09. Using the January 1st stock price of $52.75, it appears that Ford’s stock is correctly valued. This makes sense, considering that Ford is a large, widely held, and often-analyzed firm. ...
