A lotion is made from an oil blend costing $1.50 per ounce and glycerin costing $1.00 per ounce. Four ounces of lotion costs $5.50. A table titled Lotion, showing Ounces, Cost per Ounce, and Total. The first row shows, Oil Blend, and has 4 minus g, 1.50, and x. The second row shows Glycerin, and has g, 1.00, and blank. The third row shows, Mixture, and has 4, blank, and 5.50. Which value could replace x on the table? (4 – g) 1.5 (4 – g) + 1.5 4g – g(1.5) (4 – g)g'

A

Step-by-step explanation:

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%