What hypothesis test should be used to test straight H subscript 1 italic colon italic space italic space s italic space subscript italic 1 superscript italic 2 italic minus italic space s subscript italic 2 superscript italic 2 italic space italic greater than italic space italic 5

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%

step-by-step explanation:

for the free

3

step-by-step explanation:

because where the point where the 2 lines intersect is (3,-1) the x value is 3

the second option

step-by-step explanation: