One thousand tickets are sold at $5 each. One ticket will be randomly selected and the winner will receive a color television valued at $397. What is the expected value for a person that buys one ticket?

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%

part a: 1.08

part b: 27.59

the answer is:

the correct option is the option b.

to calculate the surface area of the right cylinder, we need to use the following formula:

from the picture we know that:

so, substituting and calculting we have:

hence, we have that the correct option is the option b.

have a nice day!