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You try to evaluate LULU stock s performance with Capital Asset Pricing Model ( CAPM ) . LULU s beta is 1 . 3 3

You try to evaluate LULU stocks performance with Capital Asset Pricing Model (CAPM). LULUs beta is 1.33 on financial website. Its latest stock price is $461.12 per share. The stock price one year ago was $309.49. During the same time period, the market return is 29.58% and the risk-free return is 5.25%. Compare LULUs actual annual return to its expected return based on CAPM. Did the stock outperform or under-perform? Is it on, above, or below the Security Market Line (SML)?

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