1. lucy has a jewelry business. to make a certain necklace, she spends $3.38 on materials and $5.57 on labor. she then sells the necklace for $15.99. lucy’s profit on the necklace is equal to the sale price minus the cost of materials and labor\ ) what decimal of every dollar of the sale price of the necklace is profit? show your work. round your answer to the nearest hundredth.

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%