The percent of people who say they plan to stay in the same job position until they retire has decreased over recent years, as shown in the table below. Year 1995 1996 1997 1998 1999 2000
Percent
35 30 26
Find a power function that models the data in the table using an input equal to the number of years from 1990. According to the unrounded model, in what year will only 23% of people plan to stay in the same job position unti retirement?
42
38
34
OA 2005
B. 2006
OC. 2001
OD. 2003

366

step-by-step explanation:

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%