Use the drop-down menus to choose steps in order to correctly solve 1+2b−13=12−4b−2b1+2b-13=12-4b-2b for b

Given Equation : 1 + 2b - 13 = 12 - 4b - 2b

To write: Correct Steps to solve for b

In Step 1: We simplify constant in LHS.

⇒ 2b + ( 1 - 13 ) = 12 - 4b - 2b

⇒ 2b + ( -12 ) = 12 - 4b -2b

⇒ 2b - 12 = 12 - 4b - 2b

In Step 2: We simplify variable part in RHS

⇒ 2b - 12 = 12 + ( -4b -2b )

⇒ 2b - 12 = 12 + ( -6b )

⇒ 2b - 12 = 12 - 6b

In Step 3: We transpose 6b of RHS to LHS

⇒ 2b - 12 + 6b = 12

In Step 4: Now simplify variable in LHS

⇒ 2b + 6b - 12 = 12

⇒ 8b - 12 = 12

In Step 5: Transpose 12 to RHS

⇒ 8b = 12 + 12

In Step 6: Simplify constants in RHS

⇒ 8b = 24

In Step 7 transpose 8 to RHS

In Step 8: Simplify RHS

⇒ b = 3

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%