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Suppose that when Apple invests in the resources necessary to create new technology products, it expects to earn a 20% rate of return. Suppose also that when it invests its cash in bank accounts it earns just 1%. Given this, what rate of return should investors expect if they pay $200 to acquire one share of Apple?

Suppose that when Apple invests in the resources necessary to create new technology products,
it expects to earn a 20% rate of return. Suppose also that when it invests its cash in bank accounts it earns just 1%. Given this, what rate of return should investors expect if they pay $200 to acquire one share of Apple?

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