Pg 210 Students as customers A high school's student
newspaper plans to survey local businesses about the
importance of students as customers. From an al-
phabetical list of all local businesses, the newspaper
staff chooses 150 businesses at random. Of these, 73
return the questionnaire mailed by the staff. Identify
the population and the sample.

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%