6)Assume there is one factor (the market excess return) that drives asset returns. There are two well-diversified portfolios A and B, where portfolio A has an expected returnof 10% and a beta of 2 and portfolio B has an expected return of 8% and a beta of 1. Therisk-free rate is 2%. Does an arbitrage opportunity exist

What two things do you consider when evaluating the time value of money

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?