Bianca has a choice between three savings accounts. savings account a has an apr of 3.9998%,
compounded semiannually; savings account b has an apr of 3.9742%, compounded monthly; and
savings account c has an apr of 3.9886%, compounded quarterly. bianca wants to choose the savings
account with the highest apy.
part i: if r is a savings account's apr and n is the number of compounding periods per year, what
expression gives the savings account's apy?

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%

d no solution

step-by-step explanation: