Kelly has 50% more money than Luis. Luis has $40. If Luis gets $8 more, will Kelly still have more money than Luis? What percent more/less will Kelly have in money?

Kelly will still have more money than Luis

Kelly will have 25% more

Step-by-step explanation:

Let x represent the amount of money Kelly has and y, Luis

Luis has $40

and Kelly has 50% more money than Luis

Therefore, Kelly has;

50% of $40 + $40

= 0.5*40 + 40

= $60

If Luis gets $8 more, Luis will have;

$8 + $40 = $48

since Luis' $48 is less than Kelly's $60, Kelly will still have more money than Luis

Difference in their money = $60 - $48 = $12

Therefore, Kelly will have;

12/48 * 100 more than Luis

= 25% more

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%