Suppose that the price of corn is risky, with a beta of 0.3. The monthly storage cost is $0.03 per bushel, and the current spot price is $2.97, with an expected spot price in three months of $3.13. If the expected rate of return on the market is 1.6% per month, with a risk-free rate of 0.9% per month, what is the expected futures cost

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.