Question
At the beginning of2007, Apple's beta was 1.3 and the risk-free rate was about 3 . 6 % . Apple's price was $ 8 0
At the beginning of2007, Apple's beta was 1.3and therisk-free rate was about 3.6%.Apple's price was $80.93.Apple's price at the end of 2007 was $191.22.If you estimate the market risk premium to have been 6.6%,didApple's managers exceed theirinvestors' required return as given by theCAPM?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
