Unit Test Unit Test
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The given line passes through the points (0, -3) and (2,
What is the equation, in point-slope form, of the line that
is parallel to the given line and passes through the point
-1, -1)?
ty
Oy+ 1 = -3(x + 1)
(2,3)
Oy+1 = -1} (x + 1)
2
Oy+1 = {(x+1)
43 2.
2
3 4
2
Oy+1 = 3(x + 1)
lco, -3)
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bc

9x

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%