The prior probability that an entering undergraduate student will get their ba if they have a good high school gpa is given by the answer of the previous question. in addition, 90% of students who graduate with a ba also have a high sat score, whereas 55% of students who drop out have high sat scores. the probability that an entering freshman who has a good high-school gpa and high sat scores will graduate with a ba is

the prior question mentioned above is:

the prior probability that an entering undergraduate student will get their ba is 0.48.
65% of students who graduate entered with a good high-school gpa.
40% of entering undergraduate students who don't graduate also had a good high-school gpa upon entering.
the probability of an entering college student getting their ba if they have a good high school gpa 0.6

option 1

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-22

times both sides by 2, times () by 8, add alile terms, move terms, add alike and caculate divide both sides by 3

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%

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step-by-step explanation: