Answer:
beta of stock B = 1.33
Explanation:
the beta of treasury bills is 0
the beta of stock A = 1.46
the beta of stock B = ?
the portfolio contains equal amounts of each investment and its overall beta is 0.93
0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)
0.93 = 0 + 0.4867 + 0.333B
0.93 = 0.4867 + 0.333B
0.4433 = 0.333B
B = 0.4433 / 0.333 = 1.33
True According to the quantity theory of money, if the amount of money in an economy doubles, all else equal, price levels will also double.
Definition: The quantity theory of money states that the money supply and price level in an economy are directly related to each other. When the money supply changes, the price level changes proportionally, and vice versa.
The quantity theory of money states that the price level multiplied by real output is equal to the money supply multiplied by the speed or rotation of the money supply. Speed is generally stable.
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Answer:
A
Explanation:
A budget constraint is a graph that shows all the combination of goods a consumer can consume given current prices and income of the consumer.
If income increases, the budget constraint will shift out parallel to the old
If income decreases, budget constraint will shift in parallel to the old one.
