Step 1 choices:
a.) translate 8 units up
b.) translate 7 units up
c.) translate 6 units up
d.) translate 5 units up

step 2 choices:
a.) reflect across the x-axis
b.) reflect across y = 3
c.) reflect across the y-axis
d.) reflect across x = 2

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%