Question

In 1994, when Amazon first started its business, its beta was at 0.4 and the returns...

In 1994, when Amazon first started its business, its beta was at 0.4 and the returns was around 12%. Meantime, its competitor E-Bay has a beta of 1.6 and the return is at 24%. By applying CAPM, find the:

Required :

i) Risk free rate

ii)   Market Rate of Return     

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