8. In 2002 Johan bought a collector car as an investment when its value was $180,000. He sold the car in 2014. Over the time he owned it, its value
grew an average of 2.44% each year. How much profit did Johan earn on
his investment?

what do you need me to answer?

step-by-step explanation:

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%

-3 degrees

step-by-step explanation: