In the function f(t) = 30(0.97)^t, what is the rate of change?
a. 3% growth
b. 3% decay
c. 97% decay
d. 97% growth

Option b - 3% decay

Step-by-step explanation:

We have given that :  

To find : Rate of change

Solution : Let the rate of change is denoted by r

and the growth rate of given function is 1-r = 0.97

                                                                ⇒ r =1-0.97 = 0.03

                                                                ⇒ r= 3%

Since the growth rate is -ve therefore, there is a decay rate

The rate of change is 3% decay -Option b is correct

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%