Using the examples above, answer the following questions. alice buyer purchased a computer for $345.95. she paid $100.00 down and agreed to pay $22.92 for 12 months.
she will finance $.
at the end of one year her monthly payments will total $.
to the nearest tenth, her apr will equal %.

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%

explanation:

step-by-step explanation: