Because of the Spending multiplier effect, small investment changes will create larger changes, and macroeconomic policy will undergo some improvements and expenditures
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Answer:
a: 12.8%
Explanation:
Standard Deviation would be calculated with the probability approach since there is probability given in the question.
- Formula of Standard Deviation and the solution is given in the pictures below.
- Although ERR the required part to calculate Standard Deviation is calculated in the text.
Calculating ERR:
ERR= Sum of Probabilities × Rate of returns.
In our question = ERR= 0.2 × 30% + 0.5 × 10% + 0.3 × (-6%) = 0.128 = 12.8%
Thus, by putting all the values in the formula you will get the answer 12.8%.
Answer: 41.90%
Explanation:
First calculate the risk free rate:
Required return = risk free rate + beta * (Market return - risk free rate)
28.95% = rf + 1.85 * (18% - rf)
28.95% = rf + 33.3% - 1.85rf
28.95% = -0.85rf + 33.3%
0.85rf = 33.3% - 28.95%
rf = 4.35%/0.85
rf = 5.12%
New required return;
Required return = risk free rate + beta * (Market return - risk free rate)
= 5.12% + 1.85 * (25% - 5.12%)
= 41.90%
The Free Application for Federal Student Aid (FAFSA<span>) is used to calculate the Expected Family Contribution (EFC), a somewhat harsh measure of the family's ability to pay for college. The EFC is the sum of a student contribution and a parent contribution.</span>
