Solve the following equation for b. Be sure to take into account whether a letter is capitalized or not.
d
n?
=
b
9
b
Submit Answer
attempt 1 out o

d is correct

step-by-step explanation:

no solution

step-by-step explanation:

there is not enough information in the problem to solve.

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%