Find the equation of the graph using the formula:
y=mx+c

y = 1x + 3

Step-by-step explanation:

Slope (m) =

Points: (0,3) & (-3,0)

m = 1

y = 1x + b

To find b:

3 = 1(0) + b

3 = b or b = 3

Final y = 1x + 3

Double Check:

3 = 1(0) + 3

3 = 3

0 = 1(-3) + 3

0 = - 3 + 3

0 = 0

y = x + 3

Hope you could get an idea from here.

Doubt clarification - use comment section.

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%