Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the following for questions 6 through 8: Below is an Excel Output of MONTHLY data for AAPL Intercept 0.0051 MKT-RF 1.3250 If the risk-free
Use the following for questions 6 through 8:
Below is an Excel Output of MONTHLY data for AAPL
Intercept | 0.0051 |
MKT-RF | 1.3250 |
- If the risk-free rate next year is 2% and the market risk premium is expected to be 9%, what is AAPLs expected return next year?
- What was AAPLs historic alpha (annualized)?
- Suppose next year the risk-free rate is again 2% and the market has a return of 20%. If AAPL next year has a return of 10%, what is AAPLs alpha?
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