At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was

1.4

and the risk-free rate was about

3.7%.

Apple's price was

$83.82.

Apple's price at the end of 2007 was

$199.26.

If you estimate the market risk premium to have been

6.8%,

did Apple's managers exceed their investors' required return as given by the CAPM?

The expected return is

nothing