Risk and Capital

A. Find an estimate of the risk free rate of interest.
1. DJIA 10,558.03 -52.07 -0.49%
2. NASDAQ 2,177.91 -13.41 -0.61%
3. S & P 500 1,226.42 -9.44 -0.76%
4. S & P/TSX 10,550.51 -76.20 -0.72%
5. BOVESPA 26,517.92 48.02 0.18%
6. U.S. FED FUNDS 3.50 0.06
7. U.S. FED TARGET 3.25 0.00
8. CANADIAN 10 –YR BOND 4.00 0.07
9. U.S. 10 YR TREASURY 4.39 0.07
10. U.S. GDP 07/29 3.4%
11. U.S. UNEMPLOYMENT 08/05 5.0%
12. CANADIAN UNEMPLOYMENT 08/05 6.8%
13. BRAZILIAN UNEMPLOYMENT 07/21 9.4%

Information regarding the U.S. 10 yr treasury: the risk free rate is 4.39%, market risk premium is 7.5%.
B. Downloading IBM Stock Information:
1. IBM's beta (b) : 1.666 (yahoo finance website)
2. IBM's current annual dividend : year 2004 $0.70 per share (IBM website)
3. IBM's 3 yr dividend growth rate (g) (information on dividend from IBM website)
Dividend Paid
2004 $0.70
2003 $0.63
2002 $0.59
2001 $0.55
Making the......

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Title: Risk And Capital
Approximate Word Count: 426
Approximate Pages: 2 (250 words per double-spaced page)

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