Question: Using CAPM, calculate the Expected Return for Apple and Microsoft. Get the relevant market related data, such as the risk-free rate and market return, and
- Using CAPM, calculate the Expected Return for Apple and Microsoft. Get the relevant market related data, such as the risk-free rate and market return, and describe which rate you are using from the financial markets
| Year | Microsoft | Apple | Market | |||
| Jan 2010 - Dec 2010 | 1 | -0.34% | 5.18% | 14.93% | ||
| Jan 2011 - Dec 2011 | 2 | -0.37% | 7.93% | 2.06% | ||
| Jan 2012 - Dec 2012 | 3 | 0.40% | 5.15% | 15.84% | ||
| Jan 2013 - Dec 2013 | 4 | 2.81% | 5.99% | 32.21% | ||
| Jan 2014 - Dec 2014 | 5 | 1.91% | 4.62% | 13.53% | ||
| Jan 2015 - Dec 2015 | 6 | 1.75% | 3.32% | 1.34% | ||
| Jan 2016 - Dec 2016 | 7 | 1.37% | 3.94% | 11.80% | ||
| Jan 2017 - Dec 2017 | 8 | 2.72% | 2.84% | 21.69% | ||
| Jan 2018 - Dec 2018 | 9 | 1.41% | 2.13% | -4.45% | ||
| Jan 2019 - Dec 2019 | 10 | 4.06% | 5.58% | 31.29% | ||
| Average Return | 1.57% | 4.67% | 14.02% | |||
| Std Deviation | 1.42% | 1.69% | 12.21% | |||
| Correlation with the market | 0.61 | 0.29 | 1.00 | |||
| Beta | 0.07 | 0.04 | 1.00 | |||
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