K At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.51 and the risk-free rate was about 4.69%. Apple's price was $81.44. Apple's price at the end of 2007 was $190.41. If you estimate the market risk premium to have been 5.59%, did Apple's managers exceed their investors' required return as given by the CAPM? The expected return is %. (Round to two decimal places.)
K At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.51 and the risk-free rate was about 4.69%. Apple's price was $81.44. Apple's price at the end of 2007 was $190.41. If you estimate the market risk premium to have been 5.59%, did Apple's managers exceed their investors' required return as given by the CAPM? The expected return is %. (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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Transcribed Image Text:K
At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.51 and the risk-free rate was about 4.69%. Apple's price was $81.44. Apple's price at the end of 2007 was
$190.41. If you estimate the market risk premium to have been 5.59%, did Apple's managers exceed their investors' required return as given by the CAPM?
The expected return is
%. (Round to two decimal places.)
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