The Effect of Monetary Policies in COVID and Post-COVID on the Apple Stock Price and Beta

Abstract: Central bank interventions, such as monetary policies, influence market activities in many ways. For example, the stock price and beta value. Monetary policy is a mechanism to stabilize the market by adjusting the interest rate. Theoretically, the interest rate negatively relates to stock price and beta value. However, based on other previous research, the relationship can vary across industries and countries. Other determinants can also co-influence the stock activities, including business policies. Thus, each company experienced various results from the monetary policies during the COVID and post-COVID periods. Specifically, how did Apple Inc.s stock price and beta value react to the monetary policies released by FOMC? This paper explores Apple Inc. stock price and beta under the influence of monetary policies in the COVID and post-COVID period. Additionally, this paper finds that there is a significant negative relationship between the interest rates and stock price in COVID, and an insignificant negative relationship in post-COVID; There is an insignificant negative relationship between the interests rates and stock beta in COVID, and an insignificant positive relationship in post-COVID. Hence, stock price and beta are largely influenced by market dynamics and extrinsic factors. The contradictory result can be caused by the policies Apple Inc. released and the imprecise calculation.