Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. Factor Risk PremiumIndustrial production (I) 6% Interest rates (R) 2% Consumer confidence (C) 3%The return on a particular stock is generated according to the following equation: r= 13% + 1.3I + 0.8R + 1.00C+ e. Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 5%. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting

Stock market crashes happen when the value of most of the stocks in the stock market increase at the same time. question 10 options: true false