Cumulative Exam!! Which is the simplified form of m Superscript negative 8 p Superscript 0? StartFraction 1 Over m Superscript 8 Baseline p EndFraction StartFraction 1 Over m Superscript 8 EndFraction StartFraction p over m Superscript 8 EndFraction m Superscript 8

(B)

StartFraction 1 Over m Superscript 8 EndFraction

Step-by-step explanation:

We want to find the simplified form of:

The correct option is B.

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%