Performance Task- Online Gaming Club Membership Your friend Sharleen is thinking about joining an online gaming club. She is trying to decide
between Multiplayer Madness and Games Galore. Her brother insists that Multiplayer Madness is
a better deal.
Multiplayer Madness charges a joining fee of $50 and $10 for each month.
Games Galore charges a joining fee of $10 and $15 for each month.
Sharleen is considering joining the club for either 3 months, 8 months, or 12 months.
1. Define the variables that can be used to represent the situation.

2160ft3

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%

0.85% : )

step-by-step explanation: