If a horizontal line is translated six units to the left, which of the following is true? The original line and the new line are parallel.
The new line has a different y-intercept but the same slope.
The new line has a different slope but the same y-intercept.
The original line and the new line are the same.

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%

0.038

step-by-step explanation: