At the beginning of 2007? (the year the iPhone was introduced), Apple's beta was 1.4 and the? risk-free rate was about 5.1%. Apple's price was $83.88. Apple's price at the end of 2007 was $197.42. If you estimate the market risk premium to have been 5.1%, did Apple's managers exceed their investors' required return as given by the CAPM?
The expected return is ___%
The realized return is ___%
Did Apple's managers exceed their investors required return as given by the CAPM?