The Capital Asset Pricing Model

The Capital Asset Pricing Model

Apple Incorporation

The company picked for reference is Apple Incorporated. The Beta of the company stated is 0.87. This beta shows the systematic risk or volatility of the company in comparison to the industry. The 0.87 Beta of Apple Inc. suggests that when the market increases or decreases, the company's return slightly increases or decreases correspondingly. Since the value is below one, the share in that stock would not highly be affected according to the market (Apple Inc. 2013).

Cost of Equity of Apple Inc. according to Market Risk Premium 6.5% and YTM of ...