Answer:
Trade-off. act of giving up one thing of value to gain another. Opportunity Cost. value of the next best alternative you could have chosen. Marginal Benefit.
Explanation:
Answer:
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The price elasticity of supply is given by a similar formula: If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
Answer:
=2.98%
Explanation:
Use CAPM to find the required return of the stock;
CAPM: r = risk free + beta(market return - risk free)
risk free = 4.5% or 0.045 as a decimal
beta = -0.4
market return = 8.3% or 0.083 as a decimal
Next, plug in the numbers into the CAPM formula;
r = 0.045 -0.4(0.083 - 0.045)
r = 0.045 -0.0152
r = 0.0298 or 2.98%
Therefore the required return is 2.98%