Investors required return as given by the capm

Assignment Help Financial Management

Reference no: EM132044451

At the beginning of 2007? (the year the iPhone was introduced), Apple's beta was 1.4 and the? risk-free rate was about 5.1%. Apple's price was $83.88. Apple's price at the end of 2007 was $197.42. If you estimate the market risk premium to have been 5.1%, did Apple's managers exceed their investors' required return as given by the CAPM?

The expected return is ___%

The realized return is ___%

Did Apple's managers exceed their investors required return as given by the CAPM?

Reference no: EM132044451

Questions Cloud

Calculate the volatility : Using the data in the following table, and the fact that the correlation of A and B is 0.59, calculate the volatility?

What is the stock current value per share : Tresnan Brothers is expected to pay a $2.1 per share dividend at the end of the year (i.e., D1 = $2.1). What is the stock's current value per share?

What is meant by insurable interest in an insurance policy : What is meant by Insurable Interest in an Insurance Policy?

Estimate the average return and volatility for each stock : Estimate the average return and volatility for each stock.

Investors required return as given by the capm : If you estimate the market risk premium to have been 5.1%, did Apple's managers exceed their investors' required return as given by the CAPM?

Credit default swaps effectively act : CDS (Credit Default Swaps) effectively act as ____________ against an issuer defaulting.

What is advance pretax cost of debt-aftertax cost of debt : What is Advance's pretax cost of debt? If the tax rate is 35 percent, what is the aftertax cost of debt?

The three main tools the fed uses to implement its policy : The three main tools the fed uses to implement its policy are______________, ______________, & __________________.

Conventional bond such as treasury or corporate bond : What is the unique attribute of the cash flow of a MBS pool when comparing it to a conventional bond such as a Treasury or Corporate bond?

User Account

All Pages