Question: Given the following data, you would like to estimate what the return on Amazon stock could be given its beta of 1 . 1 4
Given the following data, you would like to estimate what the return on Amazon stock could be
given its beta of as of February Other data you have collected: the rate of return on
day TBills is ; year TNotes is ; and on the long bond the year T Bond
The Prime is LIBOR is and the average return on the overall stock market is estimated
to be What do you expect the rate of return on Amazons stock to be Show the formula
and the work!
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