. Mr. Dotson wants to know if the neighbors on his street would be interested in a community watch. He surveys every fourth household on the street and concluded that 70% would be interested.

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%

  answer:

  write 548 as 500 + 40 + 8. multiply each addend by 5. then add the three products to get 2,740.