AAPL's exposure to the market

CFA Level I Corporate Finance
#1

Hello everyone,

I ran across an article explaining why and how significant AAPL’s earnings expectations are to the market, I have one question:

The article says AAPL has a 3 month Beta of 0.76, 0.82, and 0.78 with respect to the indexes of DJIA, Nasdaq 100, and S&P 500. The article ends with saying the markets exposure to AAPL is crucial.

My question is, isnt the article supposed to say AAPL’s exposure to the market? As for example, if AAPL moves up 1%, the market wont move 0.76%, 0.82%, or 0.78%. Or am I mistaken?

Thanks.

#2

i think the article is trying to point out how much APPL is influencing the overall market movement. So still the markets exposure to AAPL is crucial.

#3

How is that Beta calculated? Apple’s retained earnings are enormous, and they’ve invested their RE in the market, but no one seems to know what their positions are. That being said, their RE can be viewed as if the company were a giant hedge fund. Given this, I do not believe any beta approximations some newspaper makes on Apple.

#4

So as long as you don’t know about how they’ve invested their RE, it’s impossible to evaluate what their market exposure is.

#5

Puts on AAPL for 4Q earnings. And maybe some VIX calls for good measure.

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