Evaluate and write the answer in scientific notation. round the significant to at least 4 decimal places:

(1.71 x 10^4)(6 x 10^5)/8.8 x 10^13

1.166 x 10^-4

Step-by-step explanation:

(1.71 x 10^4)(6 x 10^5) / (8.8 x 10^13)

= (1.71) x (10^4) x (6) x (10^5) x (10^-13) x (8.8^-1)

= [(1.71)(6) / (8.8) ](10^4)(10^5)(10^-13)

= [(1.71)(6) / (8.8) ][10^(4 + 5 - 13)]

= 1.16591 x 10^-4

= 1.166 x 10^-4 (3 dec pl)

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%