At the beginning of 2007 (the year the iPhone was introduced), Apple's beta was 1.2 and the risk-free rate was about 4.6%. Apple's price was $81.49.
Apple's price at the end of 2007 was $197.98.
If you estimate the market risk premium to have been 6.8%, ddid Apple's managers exceed their investors' required return as given by the CAPM?
Question content area bottom
Part 1
The expected return is ____ %
enter your response here. (Round to two decimal places.)
Part 2
The realized return is _____ % enter your response here. (Round to two decimal places.)
Part 3
(Select from the drop-down menu.)
Did Apple's managers exceed their investors' required return as given by the CAPM?
