Can some one answer these two questions based on the sentence below: Line P passes through the point (-1,-4) and has a slope of 7.

Questions

1. What is the Y-Intercept of Line P?
2.Write the equation of Line P

the answer is d. (1.2, -4.7) on edgn

hope this !

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%