Which regression equation best fits these data? х
у
(3. 177-1, 12
(-4, 15)
-6
12
(1, 15)
15
-4
15
(-6, 12)
(2, 11)
(3,9)
10
-3
17
-1
17
1
15
0
2
11
-6
-4
-2
0
2
4
6
3
9
-5
4
6

the answer is simply just 6n add the two together as they have an n

a is the right answer

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%