Question1. In both the private and public sectors, a sharp increase in union membership coincides with the passage of the protective legislation. A longstanding debate is whether raised demand for unionization causes new legislation or vice versa. Describe how causality can work in both directions. In which direction is labour law more significant? Which direction do you think is more realistic?
Question2. What rate must you earn in order to have a deposit of $79000 grow to $111000 in 13 years?
Question3. Analyze the Capital Asset Pricing Model (CAPM). Using the course text and an article from Pro Quest as references, address the following:
i ) Explain how the CAPM assists in measuring both risk and return.
ii) Explain how the CAPM assists in computing the weighted average costs of capital (WACC) and its components.
iii) Illustrate out that why some managers have complexity applying the Capital Asset Pricing Model (CAPM) in financial decision making.
iv) Find out the benefits and demerits of using the CAPM.