Determine Whether or Not the Function Is Linear $\mathrm { P } ( \mathrm { t } ) = 59 \mathrm { t } + 12,350$

question 168

Multiple Choice

Determine whether or not the function is linear. If it is, determine the slope and interpret it.
-The population of a small town is given by P $\mathrm { P } ( \mathrm { t } ) = 59 \mathrm { t } + 12,350$ , where t is the number of years past 2010.

• A) Not linear
• B) Linear; 59; Each year since 2010, the population decreased by 59 people.
• C) Linear; 59; Each year since 2010, the population increased by 59 people.
• D) Linear; 12,350; Each year since 2010, the population increased by 12,350 people.

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Definitions:

Market Risk Premium

This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.

Security Market Line

A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.

Systematic Risk

The inherent risk associated with the overall market or economy that cannot be eliminated through diversification.

Expected Return

The anticipated return on an investment, calculated as the weighted average of all possible returns with the probabilities of their occurrence.