The following data are used to answer questions 11 to 15. Based on the following data of Apple stock traded on the NYSE and the market benchmark S&P 500: Apple Stock Returns Year S&P 500 Index Returns (Market) 2014 0.23 0.25 2015 0.12 -0.14 2016 0.08 0.07 2017 -0.15 -0.12 2018 -0.18 -0.1 2019 0.18 0.19 2020 0.36 0.3 Risk-free Rate: 0.03

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.7MBA: Stock split Using the data from E8-22. indicate the effects on ne assets and EPS of the stock spilt.
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Use the picture to answer the following questions. 14. Compute the beta of Apple stock on the SAMPLE basis. a. β= 0.7236 b. β= 0.8114 c. β= 0.8791 d. β= 1.2558 e. β= 1.4366 15. What does the Beta of Apple stock computed at question 14 tells you if the S&P 500 index increases by 15%?
The following data are used to answer questions 11 to 15. Based on the following data of Apple
stock traded on the NYSE and the market benchmark S&P 500:
Year
Apple Stock
Returns
S&P 500 Index
Returns (Market)
2014
0.23
0.25
2015
0.12
-0.14
2016
0.08
0.07
2017
-0.15
-0.12
2018
-0.18
-0.1
2019
0.18
0.19
2020
0.36
0.3
Risk-free Rate:
0.03
Transcribed Image Text:The following data are used to answer questions 11 to 15. Based on the following data of Apple stock traded on the NYSE and the market benchmark S&P 500: Year Apple Stock Returns S&P 500 Index Returns (Market) 2014 0.23 0.25 2015 0.12 -0.14 2016 0.08 0.07 2017 -0.15 -0.12 2018 -0.18 -0.1 2019 0.18 0.19 2020 0.36 0.3 Risk-free Rate: 0.03
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