The beta for General Motors (GM) is 0.5, the risk-free rate is 4%, and the market return is 9%. What is GM's risk-adjusted discount rate?
A) 4%
B) 4.5%
C) 6.5%
D) 9%
C
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Who would be least inclined to engage in "feel good" foreign projects, which contribute minimal benefits to the poor but look impressive to outside observers?
A) Private investors B) Foreign governments C) International aid agencies D) The World Bank
The goal of international economic policy cooperation is to allow for greater flexibility in exchange rates
Indicate whether the statement is true or false
If there is a 20 percentage point drop in the maximum capital-gains tax rate, _____percentage points of the increase in the share of the 1 percent can be attributed to the drop in the capital-gains tax rate.
A. 4 B. 36 C. 8 D. 20
Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent
If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent. A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2