Arandom sample of 420 new ford trucks showed that 105 required repairs within the first warranty year.
a. what is the probability that a new ford truck will need repairs within the first warranty year?
b. what is the probability that a new ford truck will not need repairs within the first warranty year?
c. what is the sample space in this problem?

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%