What is the slope of the line represented by the equation y = –1/2x + 1/4 ?

a. -1/2
b. -1/4
c. 1/4
d. 1/2

which is the answer?

slope = m

 slope equation = y=mx+b so the first number is the slope

-1/2

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%