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Technology Stocks : Apple Inc.
AAPL 278.06-0.2%Dec 11 3:59 PM EST

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To: Moominoid who wrote (9768)3/20/1998 11:01:00 AM
From: van wang  Read Replies (2) of 213176
 
u dont apply CAPM...by plug and chug...after awhile you disregard beta...u use your own rate of return from your own judgement...using beta and historical measures is static...free yourself from the book and start projecting interest rates, current risk and growth to determine proper value

the principles are the same...higher discount rate for higher risk...higher expected return for higer risk...security market line

but dont follow the book one for one...its not intended for that....book is to teach everyone a common language as it is with every business school class...few are practical except for accounting
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