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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?
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Monetary Policy And Public Finance
Authors: G. C. Hockley
1st Edition
1138704792, 978-1138704794
