Aspinner is divided into 10 equal sized sections. seven sections are colored red and three sections are colored blue. half of the sections are labeled with an even number. three sections of the spinner are both colored red and labeled with an even number. what is the probability that the arrow of the spinner will stop on a section colored red given that it stops on a section labeled with an even number

the answer is d

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%