an FIN 320Pearson EdAt the beginning of 2007 (the yoar the iPhone was introduced). Apple's beta was 1.3 and the risk-free rate was about 36% Apple's price was $82 29 Apple's priceat the end of 2007 was 5197.24. If you estimate the market risk promium to have been 5.7%, did Apple's managers exceed their investors' required returm as givenby the CAPM?The expected return is (Round to two decimal places)

Given, Apple beta = 1.3 Risk free rate = 3.6% Market risk premium = 5.7%

Al the beginning of 2007 (the year the Phone was introduced) Apple's beta was 1.3 and the risk-free rate was about 36% Apple's price was S82 29. Apple's price at the end of 2007 was $197 24. If you estimate the market risk premium to have been 57%, did Apple's managers exceed their investors' required return as given by the CAPM? The expected return iss (Round to two decimal places)

Al the beginning of 2007 (the year the Phone was introduced) Apple's beta was 1.3 and the risk-free rate was about 36% Apple's price was S82 29. Apple's price at the end of 2007 was $197 24. If you estimate the market risk premium to have been 57%, did Apple's managers exceed their investors' required return as given by the CAPM? The expected return iss (Round to two decimal places)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If the average range of the market’s return (as measured by the S&P 500) is +/- 9% for a given period, and X-Co’s Beta is 1.4, what is its expected range for that period?
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