Answer:
True
Explanation:
The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:
Y = a + bX
Here
a = Rf
B = Risk premium = Rm - Rf
X = Beta Factor
So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.
So the statement is true.
Answer: The gross domestic product.
Explanation:
The gross domestic product is the best measure used to check the performance of a country's economy within a certain period. The gross domestic product of a country is the value of all products and services produced within that country within a period (usually a year). If the gross domestic product of a country is increasing it means an economic growth is being experienced.
By spreading the process of travel to allow faster 1 to 1/person to person business.
Answer:
B) the less an additional unit of capital adds to production
Explanation:
The diminishing return state that if everything else is held constant, each additional unit will increase production by a fewer amount than previous one. That's because the same amount of resource can only use efficiently a certain amount of capital then there is a loss in this good use and therefore, the output do not increase at the same rate as we add up capital.
A person can do a good use of several type of tool for building a house but I can only use one or two at the time
Adding more tools can increase productivity but in the end there is only one person working.
