36. At the beginning of 2007 (the year the iPhone was introduced), Apples beta was 1.4 and...
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36. At the beginning of 2007 (the year the iPhone was introduced), Apple’s beta was 1.4 and the risk-free rate was about 4.5%. Apple’s price was $84.84. Apple’s price at the end of 2007 was 198.08. If you estimate the market risk premium to have been 6%, did Apple’s managers exceed their investors’ required return as given by the CAPM?
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Fundamentals Of Corporate Finance
ISBN: 9780134475561
4th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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