What is your best guess of apps stock return on this date


Suppose the CAPM holds and the stock of the firm APP Ltd. has a beta of 0.80. For simplicity, assume that the daily risk-free rate is 0%. April 1 May 1 June 1 Market Return -1% 2% 1% Beginning Market Capitalization of APP $100 Mil. $120 Mil. $120 Mil. (1) On Aprill, APP announces a LOSS ON A $10 million lawsuit against its main rival, SAM Ltd. After the announcement, the market consensus is that APP has a 50% chance of winning. What is your best guess of APP's stock return on this date? Assume the lawsuit's result has no direct impact on their operations.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is your best guess of apps stock return on this date
Reference No:- TGS02847690

Expected delivery within 24 Hours