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Stock question: At the beginning of 2012, Google (GOOG) was priced at $580.33. Googles beta is 1.15 and the risk free rate at the time
Stock question:
At the beginning of 2012, Google (GOOG) was priced at $580.33. Googles beta is 1.15 and the risk free rate at the time was 0.24% with a market portfolio risk premium of 6%. Googles price at the beginning of 2013 was $757.10. Use this information to answer the question.
What was the actual return for Google in 2012? What was the required return for Google in 2012?
Based on this data, did Google exceed the investor required return for 2012 (YES OR NO)?
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