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7. At the beginning of 2014, Apple's beta was 1.4 and the risk-free rate was about 4.5%. Apple's share price was $84.84. Apple's price at
7. At the beginning of 2014, Apple's beta was 1.4 and the risk-free rate was about 4.5%. Apple's share price was $84.84. Apple's price at the end of 2014 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? (1 mark)
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