Question: Problem 7 Intro Amazon has a beta of 0.7. The risk-free rate is 2.7% and the expected return on the S&P500 is 8%. To Attempt

 Problem 7 Intro Amazon has a beta of 0.7. The risk-free

Problem 7 Intro Amazon has a beta of 0.7. The risk-free rate is 2.7% and the expected return on the S&P500 is 8%. To Attempt 1/10 for 10 pts. Part 1 What is Amazon's cost of equity? 3+ decimals Submit Part 2 IB Attempt 1/10 for 10 pts. Now assume that the expected market risk premium is 8%. What is Amazon's cost of equity? 3+ decimals Submit

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