At the beginning of 2013 applersquos beta was 12 and the


At the beginning of 2013, Apple’s beta was 1.2 and the risk-free was about 3%. Apple’s price was $75. Apple’s price at the end of 2013 was $80. If you estimate the market risk premium to have been 6%, did Apple’s managers exceed their investors’ required return as given by the CAPM? Why? Explain.

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Financial Management: At the beginning of 2013 applersquos beta was 12 and the
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