Wrote analysts has just used the capm model to compute an re of 18.679% for the vaperware company. it found re by, among other things, computing beta from a regression between the historical stock returns of vaperware and the spy etf. the r2 of this regression was 12%. what could possibly be problematic with wroteanalysts' estimated re for the vaperware company?

answer; the correct answer to the above statement is (true);

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.