The answer is A.<span>a savings account that offers an interest rate of 4.5%</span>
Is this true of false? i would need more info
There would a shift to the right of the supply curve. The equilibrium price would decrease and the equilibrium quantity would increase.
<h3>What is the impact of technological improvement?</h3>
Technological improvement in the production process means that there is an advancement or update in the technologies that are used in the production process. For example, progress from storing information in files to storing information in the cloud is an example of technological improvement.
A technological improvement in the production of a good would make it easier to produce a good. Thus, the supply curve would move forward.
Equilibrium quantity would increase. Due to the increase in quantity supplied, price has to decline in order to induce consumers to buy more of the product. Equilibrium price would decrease.
To learn more about an increase in supply, please check: brainly.com/question/14727864
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Answer:
Reward to risk ratio = (Expected return - Risk free rate) / Beta
Reward to risk ratio of Y = ( 0.145 - 0.056) / 1.2
Reward to risk ratio of Y = 0.089 / 1.2
Reward to risk ratio of Y = 0.0741666
Reward to risk ratio of Y = 7.42%
Reward to risk ratio of Z = (0.093 - 0.056) / 0.7
Reward to risk ratio of Z = 0.037 / 0.7
Reward to risk ratio of Z = 0.0528571
Reward to risk ratio of Z = 5.29%
Security market line (SML) reward-to-risk ratio is the market risk premium itself which is 6.6%.
Stock Y has a reward-to-risk ratio that is higher than the market risk premium, it is currently under-valued in the market. Similarly, since stock Z has a reward-to-risk ratio that is lower than the market risk premium, it is currently over-valued in the market.
