Question: Graph the computations at the bottom: Stock: Amazon ( AMZN ) Beta ( 5 Y Monthly ) : 1 . 1 7 Yearly Return: (

Graph the computations at the bottom: Stock: Amazon (AMZN)
Beta (5Y Monthly): 1.17
Yearly Return:
(AMZN graph over 1 year displayed on following page)
R=(Pt Pt-1+ D)/ Pt-1
R=(142,000,00090,000,000)/90,000,000
R=0.577 or 57.7%
Market Return (Rm):
(SPY graph over 1 year displayed on following page)
Rm =(438,000,000375,000,000)/375,000,000
Rm =0.168 or 16.8%
Risk Free Return (Rf):
26-week US Treasury Bill Yield as of 11/8/2023
Rf =5.26%
Computations:
Ri = Rf + B *(Rm Rf)
Ri =0.0526+1.17*(0.1680.0526)
Ri =0.1876
(Ri Rf)/ Bi
(0.5770.0526)/1.17
=0.4482
Rm Rf
0.1680.0526
=0.1154

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