(-3-3 root of 2, 0) (-3+ 3 root of 2,0)
Answer: 1.9%
Explanation:
First derive the Market return as this is needed in the Capital Asset Pricing Model by using the same model:
Required return = Risk free rate + Beta * ( market return - Risk free rate)
Using stock Y:
12.4% = Risk free rate + 1 * (market return - Risk free rate)
12.4% = Rf + market return - Rf
Market return = 12.4%
Use this to calculate the Risk free rate:
Stock Z:
8.2% = Rf + 0.6 * (12.4% - Rf)
8.2% = Rf + 7.44% - 0.6Rf
Rf - 0.6Rf = 8.2% - 7.44%
0.4Rf = 0.76%
Rf = 0.76% / 0.4
= 1.9%
Answer:
Given the information that we have here, we are told that the Mayans were isolated due to the mountain ranges and surrounding natural barriers. This didn't allow for good trade routes for other civilizations. Due to such isolated conditions and harsh traveling environment, any other nearby civilizations would have not wanted to risk such perils for trade. The Mayans did in fact have natural resources, as we are told here that they used stone, bone, and wood in order to aid in the construction of their cities.
The biological basis of behavior