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At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.3 and the risk-free rate was about 4.7%. Apple's price was $81.87. Apple end of 2007 was $195.12. If you estimate the market risk premium to have been 6.2%, did Apple's managers exceed their investors' required return as given CAPM? The expected return is %. (Round to two decimal places.) The realized return is %. (Round to two decimal places.) (Select from the drop-down menu.) Did Apple's managers exceed their investors' required return as given by the CAPM? Can't determine Yes

At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.3 and the risk-free rate was about 4.7%. Apple's price was $81.87. Apple end of 2007 was $195.12. If you estimate the market risk premium to have been 6.2%, did Apple's managers exceed their investors' required return as given CAPM? The expected return is %. (Round to two decimal places.) The realized return is %. (Round to two decimal places.) (Select from the drop-down menu.) Did Apple's managers exceed their investors' required return as given by the CAPM? Can't determine Yes

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.3 and the risk-free rate was about 4.7%. Apple's price was $81.87. Apple's price at the end of 2007 was $195.12. If you estimate the market risk premium to have been 6.2%, did Apple's managers exceed their investors' required return as given by the CAPM? The expected return is %. (Round to two decimal places.) The realized return is %. (Round to two decimal places.) (Select from the drop-down menu.) Did Apple's managers exceed their investors' required return as given by the CAPM? Can't determine Yes No
Transcribed Image Text:At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.3 and the risk-free rate was about 4.7%. Apple's price was $81.87. Apple's price at the end of 2007 was $195.12. If you estimate the market risk premium to have been 6.2%, did Apple's managers exceed their investors' required return as given by the CAPM? The expected return is %. (Round to two decimal places.) The realized return is %. (Round to two decimal places.) (Select from the drop-down menu.) Did Apple's managers exceed their investors' required return as given by the CAPM? Can't determine Yes No
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