If a(7,9) and b(3,12) find ab (remember: ab means "the distance between points a and b")

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%

company a

step-by-step explanation:

using the linear regression models , it is found that company a   pays about $14 more. but using the same regression (linear) company b pays about $10 more.

so company a pays more than b

32

step-by-step explanation: