Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 04, 2024

The beta of Apple Inc. is 1.68. Using CAPM, what is the rate of return for this company if the expected return rate of market

The beta of Apple Inc. is 1.68. Using CAPM, what is the rate of return for this company if the expected return rate of market is 11%? Assuming the risk free rate is 8%.

a. 11.36%

b. 12.09%

c. 13.04%

d. 14.66%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

Authors: Janet Kiholm Smith, Richard L. Smith

2nd Edition

1503603210, 978-1503603219

More Books

Students also viewed these Finance questions

Question

★★★★★

Find the entropy increment of one mole of a Van der Waals gas due to the isothermal variation of volume from V1 to Vs. The Van der Waals corrections are assumed to be known.

Answered: 1 week ago

Question

★★★★★

7. Define the term content marketing.

Answered: 1 week ago

Question

★★★★★

2. Define and discuss accountability. What are some major elements of accountability? Why is this such an important ingredient for the successful manager?

Answered: 1 week ago

Question

★★★★★

Professor Schmidt, a geologist, has agreed to purchase McDonalds farm for a price of $2,000 per acre, which corresponds to the price of good quality farmland in the vicinity. However, Schmidt, on the...

Answered: 1 week ago

Question

★★★★★

The beta of Apple Inc. is 1.68. Using CAPM, what is the rate of return for this company if the expected return rate of market is 11%? Assuming the risk free rate is 8%. a. 11.36% b. 12.09% c. 13.04%...

Answered: 1 week ago

Question

★★★★★

Jack Motors manufactures a range of motor cars and its year end is 31st January 2019. You are the audit supervisor of Ayeyi & Partners and are currently preparing the audit programmes for the...

Answered: 1 week ago

Question

★★★★★

Please help solve questions 1, 2 and 3 Blue Lagoon Company provides the following information at the end of 2024 . No common stock is issued during 2024. Required: 1. Prepare the income statement for...

Answered: 1 week ago

Question

★★★★★

The primary purpose of collecting, reporting, and acting on quality costs is to reduce: A) failure costs B) profit C) defects D) overall quality costs t Page

Answered: 1 week ago

Question

★★★★★

Using the Smith's BBQ Report, if your Total Cost of Sales will increase by 1 % next week, how much in Total Sales must you make next week in order for your gross margin to equal $ 3 2 , 0 0 0 ? (...

Answered: 1 week ago

Question

★★★★★

Part 2: Solve a real-world problem using a square root function. When Isabel began her book-selling business, she stored her inventory in her garage. Now that her business has grown, she wants to...

Answered: 1 week ago

Question

★★★★★

Find dy/dx if x = te, y = 2t2 +1

Answered: 1 week ago

Previous Question Next Question