Answer:
option (b) 12.77 percent
Explanation:
Data provided in the question:
Expected return = 15.72% = 0.1572
Beta = 1.33
Risk free rate = 3.82% = 0.0382
Inflation rate = 2.95% = 0.0295
Now,
Expected return = Risk free rate + Beta × (Expected market return - Risk free rate)
or
0.1572 = 0.0382 + 1.33 × ( Expected market return - 0.0382 )
or
0.119 = 1.33 × ( Expected market return - 0.0382 )
or
Expected market return - 0.0382 = 0.08947
or
Expected market return = 0.12767
or
Expected market return = 0.12767 × 100% = 12.767% ≈ 12.77%
option (b) 12.77 percent
<span> Reduce the client's base of support.</span>
Answer:
the amount that should be show more money for spending is $80
Explanation:
The computation of the amount that should be show more money for spending is as follows;
= Certificate of deposit × reward for saving or postponing consumption percentage
= $1,000 × 8%
= $80
hence, the amount that should be show more money for spending is $80
Im going to say Grow in value or produce income
Answer:
Answer explained below
Explanation:
(1)
IS Model:
Y = C + I + G + X - M
Y = 100 + 0.5Y + 100 - 20r [G = X = M = 0]
(1 - 0.5)Y = 200 - 20r
0.5Y = 200 - 20r
Y = 400 - 40r ......(1) [IS Equation]
LM Model:
Money demand (Speculative + Transactions demand) = Money supply
100 - 10r + 0.1Y = 80
0.1Y = 10r - 20
Y = 100r - 200 .....(2) [LM Equation]
(2) When IS & LM intersect, from part (1):
400 - 40r = 100r - 200
140r = 600
r = 4.29
Y = 100r - 200 = (100 x 4.29) - 200 = 429 - 200 = 229
(3)
There will be four regions as explained below:
In region I, there is excess supply in both goods and money market, which puts downward pressure on both interest rate and output.
In region II, there is excess demand in goods market, but excess supply in money market, which puts upward pressure on output & downward pressure on interest rate.
In region III, there is excess demand in both goods and money market, which puts upward pressure on both interest rate and output.
In region IV, there is excess supply in goods market, but excess demand in money market, which puts downward pressure on output & upward pressure on interest rate.
