Explain how you should use the formula to calculate the number of pennies on rows 1-4. why use the formula?

figure c

step-by-step explanation:

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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%

12r - 8 - 12

you have to combine like terms. below i have bolded the like terms:

12r - 8 - 12

together it combines to:

12r - 20

hope this !