Solve the Problem. -A Cable Company Charges by the Number of Movie Channels

question 150

Multiple Choice

Solve the problem.
-A cable company charges by the number of movie channels a subscriber chooses. The cost is given by 11.90 + 3.70x, where x is the number of movie channels. What is the cost for 2 movie channels.

• A)$27.50
• B)$88.06
• C)$31.20
• D)$19.30

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Definitions:

Reward To Risk Ratio

A measure that evaluates the anticipated gains from an investment against the level of risk assumed to achieve these gains.

Security Market Line

A graphical representation of the expected return of all risky marketable securities as a function of their beta, or systemic risk, according to the capital asset pricing model.

Diversifiable Risk

Relates to the risk that can be reduced or eliminated from a portfolio by holding a variety of investments.

Non-Diversifiable Risk

A type of investment risk that cannot be eliminated through diversification, arising from factors that affect all companies.