D ‾
BD
drawn to hypotenuse
A
C
‾
AC
. If
A
D
=
5
AD=5 and
A
C
=
42
,
AC=42, what is the length of
A
B
‾
AB
in simplest radical form?

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%

the first option is the answer.