Answer:
Risk-free rate decreases
Explanation:
The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:
1. the market rate of return,
2. the beta value
3. the risk-free rate.
Ra = Rrf + [Ba∗(Rm−Rrf)]
where:
Ra=Cost of Equity
Rrf = Risk-Free Rate
Ba = Beta
Rm=Market Rate of Return
From the formula
Ra = Rrf + [1.2∗(Rm−Rrf)]
Ra = Rrf + 1.2Rm - 1.2Rrf
From Ra = 1.2Rm -0.2Rrf
From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.
Based on the information given, it can be deduced that the annual percentage rate (APR) is 24%.
The annual percentage rate simply means the yearly interest that's generated by a sum that's charged to a borrower. In this case, the APR is 24% after 6 months.
Also, the credit cards that have an annual fee will be credit card 2 and 3. It can also be deduced that the grace period is the same for the three credit cards while credit 3 has a membership.
If one pays the credit card bill on time and the balance each month, the best credit card is credit card 1. Lastly, when one has a balance from time to time credit card 1 is still the best.
Learn more about APR on:
brainly.com/question/2772156
Answer:
a. The low unemployment rate Of early 2018 could have resulted from many discouraged workers leaving the labor force.
FALSE, the economy was growing during 2017 and 2018, so the fall in unemployment levels is reasonable.
b. Growth of real output slowed between the last quarter of 2017 and the first quarter of 2018.
TRUE, it fell from 2.9% to 2.1%.
c. In early 2018, real output in the economy rose, while unemployment declined.
FALSE, real output fell from 2.9% to 2.1% as well as unemployment that fell to 3.9%.
d. The prices of all domestic products and services rose in 2017.
TRUE, the consumer price index increased by 2.1% during 2017.
