1. In 300 words. Discuss beta and its components
2. Look up the restaurant/dining industry averages for the profit margin and compare and contrast the industry to Starbucks and McDonalds. What did you discover?
3. Suppose that you're planning a vacation and borrow $2,000 from a bank for one year at a stated annual interest rate of 15 percent, with interest prepaid (a discounted loan). Also, assume that the bank requires you to maintain a compensating balance equal to 20 percent of the initial loan value. What is the face amount of the loan?
A. $2,896.25
B. $3,076.92
C. $3,256.85
D. $3,562.98
E. $4,521.14