The equation 9+12m=6+15(m-1) models the following situation: movie-rental company a charges a sign-up fee of $9 plus $12 per month, and company b charges $6 for the first month plus $15 per month after that. at a certain number of months, the cost of the two companies is equal. which equation is a simplified version of the one above?

3m = 18

after 6 months the prices are the same

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%