Answer:
$75 billion
Explanation:
Recall that
Disposable Income = Personal Income - (Personal taxes + other deductions)
OR
Disposable income = Consumption + Savings.
Given that
Personal Consumption expenditure = $70 billion
Savings = $5billion
We use the second formula.
Thus,
Disposable income = 70 + 5
= 75
Hence, from the given set of data, disposable income = $75 billion.
I think answer is (b) number because she loves to ride and spend every spare minute helping her uncle with his three horses.
B,
A and C are incorrect because a blog is not used for personal communications
D Blogs are not used to communicate with one person
Answer:
D) Beta .98 expected return .107
Explanation:
In CAPM (Capital Asset Pricing Model), expected return = risk-free rate + Beta * market risk premium = 3.4% + Beta * 7.4%
We try every choice consecutively
A) Beta .87 expected return .096
⇒ expected return = 3.4% + 0.87 * 7.4% = 0.098
A is wrong
B) Beta 1.09 expected return .102
⇒ expected return = 3.4% + 1.09 * 7.4% = 0.1147
B is wrong
C) Beta 1.62 expected return .146
⇒ expected return = 3.4% + 1.62 * 7.4% = 0.154
C is wrong
D) Beta .98 expected return .107
⇒ expected return = 3.4% + 0.98 * 7.4% = 0.107
D is TRUE
E) Beta 1.16 expected return .139
⇒ expected return = 3.4% + 1.16* 7.4% = 0.12
E is wrong
