The graph shows two lines, A and B. у
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A
B
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1
-X
0
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Part A: How many solutions does the pair of equations for lines A and B have? Explain your answer. (5
Part B: What is the solution to the equations of lines A and B? Explain your answer. (5 points)

what graph

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%