Write equations for the vertical and horizontal lines passing through the point (1, 0). vertical line:

horizontal line:

Vertical Lines...

A vertical line always is of the form x = ___

This is because every point on that line has the same x-value.

Horizontal Lines...

A horizontal line always is of the form y = ___

This is because every point on that line has the same y-value.

In your case, the vertical line is x=1 and the horizontal line is y=0.

ab will be equal to

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%