One analog clock loses 3 minutes every 2 hours and another analog clock gains 3 minutes every 4 hours. At noon, the owner sets the correct time on both clocks and leaves on a business trip. When he returns home in less than two weeks, the clocks show the same time. What time does he return? What time do the clocks show?

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%