Question
1 - Please use 3 years monthly return data from Apple stock to find the arithmetic and geometric average rate of return of this stock,
1 - Please use 3 years monthly return data from Apple stock to find the arithmetic and geometric average rate of return of this stock, total risk of this stock, and the normal distribution of this stock returns.
2 - Based on the beta information, please use an appropriate model to decide if this stock is overpriced or underpriced. You can take 3 years average rate of return as the expected rate of return, the 3 years average rate of return on S&P 500 index as the market return, and the 3 years average Treasury note rate of return as the risk free rate.
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