Opportunity Cost: Tom took a job at a grocery store during his summer break. At the end of
the summer, he managed to save $500 from
the job. Tom would like to purchase a new
television for his bedroom, while his parents
have advised him to open a savings account. A
new savings account earns 2 percent interest
per year. If Tom chooses to purchase the
television instead, what is the marginal cost or
marginal benefit after one year?

i think its a and d

step-by-step explanation:

can i see the following ?

step-by-step explanation:

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%