Line l1, l2 and l3 are in the same plane, l1 is perpendicular to l2, and l3 is parallel to l1. which of the following statement must be true? 1. l3 is parallel to l2 2.l3 is perpendicular to l2 3.l3 intersects l2

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%