Slow down the productivity of the workplace
We import goods from other countries when they are harder to make in ours, we export goods to other countries when the goods are harder to make or obtain in theirs. if a nation exports more than it imports, a surplus is created. When a country imports goods more than it exports, it creates a trade deficit. A trade deficit in a nation causes it to have to borrow from other countries in order to pay for the imports. On the other hand, a surplus is much healthier for the economy light of the fact that it boosts economic output.
Answer:
ER(S) = Rf + β(Rm - Rf)
ER(S) = 6 + 1.20(14 - 6)
ER(S) = 6 + 9.6
ER(S) = 15.6%
Explanation:
The expected return on a stock is a function of risk-free rate plus the product of beta and risk-premium.
