The risk premium for exposure to aluminum commodity prices is 4%, and the firm has a beta relative to aluminum commodity prices
1 answer:
You might be interested in
Answer:
consumer surplus will decrease.
Explanation:
Consumer surplus is defined as the difference between the price customers are willing to pay for a product and what they actually pay.
On the demand and supply curve it is indicated by the shaded area between equillibrum and demand curve as illustrated in the attached diagram.
For example let's assume the price a customer was willing to pay for a product was $50 and market price was $30
Initial consumer surplus= 50- 30= $20
Assume bmarket price increase to $40
The new consumer surplus is= 50- 40
Present consumer surplus= $10
So a price increase causes a decrease in the consumer surplus.
Answer:
$8750.87
Explanation:
This is compound interest problem. The formula used to solve this would be:
Where
F is the future value (what we want, after 3 years)
P is the initial value (given 6900)
r is the rate of interest per period
here, 8% per year, so 8/4 = 2% per period (since compounded per quarter)
t is the time (3 years and compounding per year so times of compounding is 3*4 = 12), so t = 12
Substituting, we get our answer:
<u>There will be about $8750.87 at the account at the end of 3 years!</u>