Alex leaves home, travels 5 miles east, and arrives at the library. he leaves the library and travels 3 miles north to a friend's house. this trip can be plotted on the coordinate plane, where home is the point (0,0). alex wants to find out how far his house is from his friend's house and uses the distance formula. which other formula can he use?

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%