Question
Suppose that Apple unexpectedly released a new product yesterday that no market participants were expecting. If Apple's return yesterday was 4.55%, while the market's return
Suppose that Apple unexpectedly released a new product yesterday that no market participants were expecting. If Apple's return yesterday was 4.55%, while the market's return was 2.57%, then what was the fraction of Apple's total return yesterday that can be attributed to the new product launch? Assume that the CAPM holds, Apple's CAPM beta is 1.30, and the risk-free rate is 0.48%.
Note:Please express your answer as adecimalandnota percentage. For instance, a proportion of 5% should be expressed as 0.05, a proportion of 50% should be expressed as 0.5, and a proportion of 500% should be expressed as 5. Please provide an answer that is accurate to at least four decimal places.
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