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Word Problem 9-24 (Static) [LU 9-2 (1)]
23
points
Maggie Vitteta, single, works 40 hours per week at $12.00 an hour. How much is taken out for federal income tax with one withholding
exemption? (Use Table 91 and Table 9.2) (Round your answer to the nearest cent.)
Amount
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c. side angle side. u shares the same sides

answer: what are the following choices

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%

because that’s us why