The following table shows the probability of rolling the numbers 1 through 7
on a fair 7-sided die.
2 3 4 5 6 7
P(X) 1/71/71/7 17 177 177 1/7
What is the standard deviation of the random variable X, "the number that
comes up on the die"?
O A. 2.0
O B. 2.917
O C. 3.745
O D. 3.5
O
E. 1.708
PLA ANSWER

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%