Ineed with p=2l+2w and solve for w

remember, you can do anything to an equation as long as you do it to both sides

try and isolate the variable you are solving for and divide it by its constant

p=2l+2w

minus 2l from both sides

p-2l=2w

divide both sides by 2

which can also be simplified to

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%