Question 3
/1
The Senior Class sponsor created the two-way frequency table shown below indicating student's choice
for a homecoming theme.
Casino
Masquerade Ball
Arabian Nights
Total
Juniors
100
362
212
50
Seniors
190
159
38
387
Total
290
371
749
88
Calculate the conditional relative frequency of juniors selecting a Masquerade Ball as the theme to
homecoming to the nearest hundredth. Do not use a percent sign, just write the number rounded to
the nearest hundredth.

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%

4932,9180,7625 are divisible by 9