Compute the expected rate of return for stock

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Reference no: EM1373126

[A] If the beta of Amazon is 2.2, risk-free rate is 5.5 percent and the market risk premium is 8%, compute the expected rate of return for Amazon stock:

A. 15.8%
B. 14.3%
C. 35.2%
D. 23.1%

[B] If the beta of Exxon Mobil is 0.65, risk-free rate is 4% and the market rate of return is 14%, compute the expected rate of return from Exxon:
A. 12.6%
B. 10.5%
C. 13.1%
D. 6.5%

Reference no: EM1373126

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