A tire manufacturer knows that 5% of tires contain a defect, and the presence of a defect is independent from tire to tire. What is the probability that if 5 tires are inspected, exactly 2 have a defect?
Round to 3 decimal places.

answer

a the answer hopes this

step-by-step explanation:

step-by-step explanation:

b and c

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%