At the beginning of 2007 apples beta was 13 and the


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?

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Risk Management: At the beginning of 2007 apples beta was 13 and the
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