Luke has a situation on his hands. A pipe in his house froze and cracked from cold weather. Now he has a water leak. The leak has been releasing of a liter of water every 2 hours. If w represents the amount of water lost and h represents the number of hours, which equation represents this proportional relationship?

2 hours is the proportional

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%