Suppose the Beta of Amazon Is 2

question 53

Multiple Choice

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

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

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Definitions:

Communication Effectiveness

The degree to which communicated information is understood and achieves its intended effect.

Sender

The person or entity that initiates a message or communication.

Receiver

An individual or entity that is the target or recipient of a message, communication, or signal.

Intended Message

The specific information or emotion that a communicator aims to convey to the recipient.