Astore down the street is selling a used video game for 25% off the retail price. the game regularly sells for $89.00. what is the sale price of the game? a. $22.25 b. $65.75 c. $66.25 d. $66.75

what i would say the best answer is a. 40.5

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%