At the beginning of 2007 (the year the iPhone was introduced), Apples beta was 1.3 and the
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At the beginning of 2007 (the year the iPhone was introduced), Apple’s beta was 1.3 and the risk-free rate was about 3.7%. Apple’s price was $81.71. Apple’s price at the end of 2007 was 199.08. If you estimate the market risk premium to have been 5.6%, did Apple’s managers exceed their investors’ required return as given by the CAPM?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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