If the Beta of Amazon

question 30

Multiple Choice

If the beta of Amazon.com is 2.2, risk-free rate is 5.5% and the market risk premium is
8%, calculate the expected rate of return for Amazon.com stock:

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

---

Definitions:

Terminate the Contract

The act of legally ending an agreement or contract before its predetermined end date.

One-Time Fee

A charge that is paid only once for a service or product, rather than recurring payments.

Franchise Fee

The upfront payment a franchisee makes to a franchisor for the rights to use the franchisor's brand, system, and ongoing support.

Due Diligence Fee

A fee paid by a potential buyer to review a company's assets, liabilities, and operations before finalizing a purchase or investment.