In the process of making a financial forecast, Farid has been looking closely at his variable expenses. Currently, each week he spends an average of $25 on food, $30 on
entertainment, and $40 on clothing and other purchases. If Farid reduced his variable
expenses in each of these three categories by $7 a week, how much would he save
over the course of one year?

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lol we need to see what the question is asking about

step-by-step explanation:

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%

answer: your correct answer is b. d.

step-by-step explanation: