Abstract
The capital asset pricing model (CAPM) is a highly useful and relatively simple equation used in this study for calculating the volatilities, also known as beta, of different stocks in four different industries in the S&P 500 Index and a 1-year T-Bill. The beta values of the stocks in each industry were added together to find the total beta for each industry. An overall decreasing trend in industry beta values near the end of the 2022 can be seen for banking and media & entertainment, while transportation increased a little and retail remained relatively constant, with transportation having beta values closest to one. Changes in industries with beta values near one will better reflect the overall market, as the markets beta is assumed to be one. The purpose of this research is to compare the risks and sensitivities of these four industries after the COVID pandemic, and the results show that as the pandemic subsides, beta values have begun to shift closer towards one.
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