Orion is working with a data set that compares the outside temperature, in degrees celsius, to the number of gallons of ice cream sold per day at a local grocery store.
the data has a line of best fit modeled by the function f(x) = 3x + 4 . orion determines that when the temperature is 25∘c, the store should sell about 79 gallons of ice cream. the correlation coefficient of the data is 0.39.
explain how accurate orion expects the prediction to be.

b

step-by-step explanation:

step-by-step explanation: 4 cause 2+2=4

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%