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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    Suppose the Beta of Amazon Is 2
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Suppose the Beta of Amazon Is 2

Question 53

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%

Correct Answer:

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