Brian rented a truck for one day. There was a base fee of $20.95, and there was an additional charge of 90 cents for each mile driven. Brian had to pay $254.05 when he returned the truck. For how many miles did he drive the truck?

254.05 - 20.95 = 233.10 / .90 = 259

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%