Managers exceed their investors required return

Reference no: EM131351022

At the beginning of 2007, Apple's beta was 1.3 and the risk-free rate was about 3.6%. Apple's price was $82.99. Apple's price at the end of 2007 was $199.01. If you estimate the market risk premium to have been 5.9%, did Apple's managers exceed their investors' required return as given by the CAPM?

Reference no: EM131351022

Questions Cloud

Million of retained earnings : In its most recent financial statements, Nessler Inc. reported $35 million of net income and $350 million of retained earnings. The previous retained earnings were $326 million. How much in dividends were paid to shareholders during the year? Assume ..

What is a repeated measures design : What is a repeated measures design? What are the advantages of using a repeated measures design? What are the disadvantages?

What would be the advantages of the design : When would a researcher decide to use the matched pairs design? What would be the advantages of this design?

International aids conference held in durban : In this simulation we will explore the 21st International AIDS Conference held in Durban, South Africa in 2016. The goal is to create an agreed upon global plan of action that addresses the objectives below.

Managers exceed their investors required return : At the beginning of 2007, Apple's beta was 1.3 and the risk-free rate was about 3.6%. Apple's price was $82.99. Apple's price at the end of 2007 was $199.01. If you estimate the market risk premium to have been 5.9%, did Apple's managers exceed their..

Distinguish between random sampling and random assignment : The procedure used to obtain your sample (i.e., random or nonrandom sampling) is not the same as the procedure for assigning participants to conditions; distinguish between random sampling and random assignment.

What is the percentage of payload data rate : Inter-frame gap: After a packet has been sent, transmitters are required to transmit a total of 96 bits of "idle line" state before transmitting the next packet.

The risk of the overall market : You have $116,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 11 percent and that has only 60 percent of the risk of..

Operational definition of independent and dependent variable : Design an experiment to test the hypothesis that single-gender math classes are beneficial to adolescent females. Construct operational definitions of both the independent and dependent variables.

User Account

All Pages