. Triangle PQR is a right triangle with right angle at R. The line RQ is less than the line PR. M is the midpoint of the line PQ and N is the midpoint of the line QRS is a point inside the triangle. The line MINI
greater than the line MS

6hryt%4578855

nlgqer

step-by-step

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%