Terence solves the problem and finds 53.04 3 4.6 5 2,439.84. Tara says that his product is incorrect. Fill in the blanks to help Tara explain Terence’s error. Terence moved the decimal point in the product too places to the left. The first factor has decimal place(s) and the second factor has decimal place(s). The product should have decimal place(s). Terence should have moved the decimal point places to the left.

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%

rotation point l

step-by-step explanation: