21. Which equation best represents the line of regression in the following scatter plot?
O A) y = 2x + 1
O B) y = -2x + 1
O C) y = -1/2x + 3
OD) y = x + 2x + 4

D

Step-by-step explanation:

the answer is the third / last answer

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%