Exercise 4.50. suppose an alarm clock has been set to ring after t hours, where t ∼ exp(1/3). suppose further that your friend has been staring at the clock for exactly 7 hours and can confirm that it has not yet rung. at this point, your friend wants to know when the clock will finally ring. calculate the conditional probability that she needs to wait at least 3 more hours, given that she has already waited 7 hours. more generally, calculate the conditional probability that she needs to wait at least x more hours, given that she has already waited 7 hours

do i do it on a graph?

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%