Suppose Price Increases from $7

question 34

Multiple Choice

Suppose price increases from $7.00 to $13.00. Using the mid-point formula, what is the percentage change in price?

• A) −0.6 = −60 percent
• B) 0.6 = 60 percent
• C) 0.7 = 70 percent
• D) 1.30 = 130 percent

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Definitions:

Security Market Line

A line graph that represents the relationship between risk (beta) and the expected return of the market and various securities.