Finance-On January 27, 2010, Steve Jobs took the stage to announce

Finance-On January 27, 2010, Steve Jobs took the stage to announce

Question # 00113354 Posted By: kimwood Updated on: 10/07/2015 01:04 PM Due on: 11/06/2015
Subject Business Topic General Business Tutorials:
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On January 27, 2010, Steve Jobs took the stage to announce, as expected, a new addition to the Apple's (AAPL) product line. The iPad, a tablet computer, recevied good reviews but the stock price fell from a close of $205.94 on January 26th to $192.06 by the weekend. In the same period, the Nasdaq index went from 2203.73 to 2147.35.

  • Why would the price of AAPL fall just when the company announces an exciting new product?
  • Comment on what part of the move in AAPL's price was systematic and what part was intrinsic. Assume that AAPL has a beta of 1.28 versus the Nasdaq index.
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    Tutorial # 00107790 Posted By: kimwood Posted on: 10/07/2015 01:04 PM
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