∑_(n=1)^∞▒〖( 1/2 )〗^2n

The series converges to

Step-by-step explanation:

It seems to be this series:

We have

Using the Root test we can see that this series converges once

Then,

The series is convergent.

Once the series is geometric, the first term is and the ratio is also in this case.

The sum of infinite geometric series is such that

24

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%