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:

Group Discussion

A collaborative exchange of ideas and viewpoints among a group of people, aimed at enhancing understanding, solving problems, or making decisions.

Person Analysis

An assessment process within training needs analysis that identifies individual employees’ development needs, skill gaps, and learning opportunities.

Training Needs

The identification of gaps between an individual's or group's current skills and knowledge and those required for effective performance.

Employee Performance

An assessment of how effectively and efficiently an employee meets predetermined standards or objectives.