A 36 oz container of Sour Punch Juice costs $6.84. A 48 oz container of the same juice costs $10.08. Which is the better buy?

the 10$ one

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%

for this case we must apply distributive property to the following expression:

the distributive property states that:

then, when applying the property we have to multiply the -2 for each term within the parenthesis: