Comparison Between Apple and AT&T (Wilshire 500)

This study presents the comparison between APPLE and AT&T by using the Capital Asset Pricing Model (CAPM). This process has improved asset pricing abilities and allow to discovery of the “one true” market returns, hence the CAPM can be used to find the both company performance with the overall index. The market portfolio returns required for CAPM to be accurate are then calculated and compared with its performance for the past 10 years (1/4/2009-29/12/2017)of each both companies Apple and AT&T comparing their performance to the overall index market of the whole world Wilshire 500. The overall best distribution to use for CAPM market return is the student t-distribution. This study also contributes to literature in that it finds the market proxies used in other studies to discredit the CAPM are inefficient and adversely affect the result.