Bob is purchasing clothing for the new school year. he buys jeans that are 39.99 each and buys shirts that are 24.99 each. he also has a coupon for 10% off his total. using j and s as my variables how would i right am expression to show how much money he will save by using the cupon

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%

the correct option is b

step-by-step explanation: