Check My Work (1 remaining) Assume that the market is in equilibrium and that stock betas can be estimated with historical data. The returns on the market, the returns on United Fund (UF), the risk-free rate, and the required return on the United Fund are shown below. Based on this information, what is the required return on the market,

?

Year Market UF
2011 −9% −14%
2012 11% 16%
2013 15% 22%
2014 5% 7%
2015 −1% −2%

:

7.00%; rUnited:

40.00%;

took the test it's 94

-4

step-by-step explanation:

(-4+8)=-(4-8)=-8+4=-4

geometry: triangles

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call the larger triangle abc

then the smaller triangle cde is similar to abc (all angles are equal, aaa).  

ab is the side that is 36, and we wish to find de, the side corresponding to ab

area_cde = area_abc - area_cde --> area_abc / area_cde = 2

let x=length of de

ratio of areas = (ratio of sides)^2

+2+=+%2836%2fx%29%5e2+

+2+=+1296%2fx%5e2+

++x%5e2+=+1296%2f2+=+648+

25.45584