Suppose the Beta of Amazon Is 2

question 13

Multiple Choice

Suppose the beta of Amazon is 2.2, the risk-free rate is 5.5 percent, and the market risk premium is 8 percent. Calculate the expected rate of return for Amazon.

• A)15.8 percent
• B)14.3 percent
• C)35.2 percent
• D)23.1 percent

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Definitions:

Morpheme

The smallest grammatical unit in a language that has semantic meaning.

Anthropologist Benjamin Whorf

A linguist and anthropologist known for his hypothesis that the structure of a language affects its speakers' cognition and worldview.

Vocabulary

Vocabulary consists of the words known and used by a person in speech and writing, reflecting their language proficiency and knowledge.

Whorfian Hypothesis

The theory that the structure of a language affects its speakers' cognition or world view, suggesting the linguistic categorization influences thought.