The answer is false. The investment is profitable if the total of all the adjusted cash inflows and the outflows is higher than zero. The Positive net cash inflow additionally indicates that the rate of return exceeds the 5% discount rate.
The required rate of return (RRR) for a stock with a high beta in relation to the market should be higher for investors utilizing the inflows CAPM calculation. The Investors must be compensated for the increased level of risk associated with investing in the higher beta stock by the greater RRR in comparison to other the investments with low betas.
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Answer: C. the coattail effect.
Explanation: Coattail effect refers to situations in which the actions of other franchises in one way or the other affects the success or failure of one particular franchise's business.
Answer:
the three important economic questions are
1 - What are goods and services?
2-How should these goods and services be produced?
3-Who consumes these goods and services?
Answer:
The correct answer is the letter C. by showing that if total spending in the economy grows faster than total production, prices will rise
Explanation:
The dynamic aggregate supply and demand model explains inflation as follows: In the short run, an economy's production capacity is limited to existing factors of production, ie there is little room to increase the amount of capital and thus the supply of goods and services. Thus, if aggregate demand, that is, the economy's consumption capacity grows faster than production capacity, that is, to supply goods and services, there will be demand inflation, which happens when aggregate consumption pressures aggregate supply, raising price levels.
