Rohit wants to find the best model for a bivariate data set. he used a calculator to create a linear model, a quadratic model, and an exponential model. the coefficient of determination for the linear model was 0.85. the coefficient of determination for the quadratic model was 0.90. the coefficient of determination for the exponential model was 0.81. which model should he use to represent the data set?

The answer is quadratic, I took the test.

quadratic

Step-by-step explanation:

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%