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Intro Amazon has a beta of 0.6. The risk-free rate is 0.7% and the expected return on the S&P500 is 8%. Part 1 - Attempt

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Intro Amazon has a beta of 0.6. The risk-free rate is 0.7% and the expected return on the S\&P500 is 8%. Part 1 - Attempt 1/3 for 10 pts. What is Amazon's cost of equity from retained earnings? Part 2 Attempt 1/3 for 10 pts. Now assume that the expected market risk premium is 8%. What is Amazon's cost of equity from retained earnings, according to the CAPM

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