Which scenario reflects an annual inflation rate of 3%? a. in year 1, the price of a computer is $325.00. in year 2, the same computer costs $328.00. b. in year 1, the price of a soda is $0.75. in year 2, the same soda costs $0.78. c. in year 1, the price of a board game is $10.00. in year 2, the same board game costs $10.03. d. in year 1, the price of a sofa is $500.00. in year 2, the same sofa costs $515.00.

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%

english maybe i can ..