Which function represents the line that contains the points (-6.4, -2.6) and (5.2, 9) A. y= -5.32 – 18.56
B. y= -5.32 + 36.56
C. y= 3.82 +1
D. y= x + 3.8

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%

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combine all like terms then its just a 2 step equation