I may be wrong but I believe it’s false
Answer:
Please find the answer in the attached image
Explanation:
Please find attached the table used in answering this question
Marginal benefit is the change in total benefit when consumption is increased by one unit
Please find attached the image used in answering this question
Credit cards allow you to buy goods and services with credit and if you go over the credit limit you’ll be charged an overdraft fee but with debit cards you can connect the money you earn from your job to the card and spin the money on the card but when the money is gone you have to wait till next paycheck to spend more but they will not be an overdraft fee also credit cards can affect your ability to be approved for loans and pay house mortgages if your credit score is bad meaning you don’t have a good history of paying your bills on time it will make it hard for you to apply for car loans in house mortgages
Answer:
Beta = 2
New required rate of return = 16.50%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
12.50% = 3% + Beta × 4.75%
12.50% - 3% = Beta × 4.75%
So, the beta would be 2
The (Market rate of return - Risk-free rate of return) is also known as the market risk premium
Now the required rate of return would be
= 3% + 2 × 6.75%
= 3% + 13.50%
= 16.50%