Alex is deciding between two investment options, Option A and Option B. He wants to choose the option that has the highest rate of growth over the first 3
years, because he plans to withdraw his investment at that time. The growth of Option A and Option B can be modeled by their respective functions

15

step-by-step explanation:

step-by-step explanation:

207/8 is the right

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%