Answer:
4.8%
Explanation:
Calculation for the risk free rate if the market rate of return is 12.5%
Using this formula
Expected rate of return = Risk free rate + Beta( Market rate -Risk-free rate)
Let plug in the formula
0.1635 =Risk-free rate of return + 1.5(0.125 -Risk free rate of return)
0.1635 =Risk-free rate of return + 0.1875 - 1.5(Risk-free rate of return)
0.1635 - 0.1875 =Risk-free rate of return - 1.5Risk-free rate of return
−0.024 = - (1-0.5 Risk-free rate of return)
−0.024 = - 0.5 Risk-free rate of return
Risk-free rate of return =0.024 / 0.5
Risk-free rate of return = 0.048
Risk-free rate of return = 0.048 * 100%
Risk-free rate of return = 4.8%
Therefore the risk free rate if the market rate of return is 12.5% is 4.8%
Answer:
Gap between the supply curve and the market price.
Explanation:
Producers surplus refers to the surplus that a producer of a commodity can obtain. The producers surplus is the difference between the producer's willingness to accept the price and the actual price they have received.
Producers surplus = Actual market price - Willingness to accept the price
Graphically, it is the area between the upper portion of supply curve and the market price.
Answer:
increase in equilibrium Y in the Keynesian AE model = 500
Explanation:
Formula AE Model = ΔY = 1/1-C * ΔG
Where ΔY = Change in National Income
Marginal Propensity to Consume =0.80
Change in government spending =100
ΔY = 1/1-0.8*100 = 1/0.2*100 = 5*100 = 500
<span>This scenario is a prime example of cost-effective design. The store is able to save space, as well as maintain a much small inventory of items. They can also save money by not carrying an unnecessarily large stock of paint that may or may not ever sell.</span>