Robert qualifies for a $0 down payment on a car loan. will it be a good idea for robert to make a down payment? question 17 options: yes, because it will reduce the total cost of the car. yes, because it will reduce his maintenance costs. no, because it will increase his insurance premiums. no, because it will increase his interest rate.

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%