a household consumes 2100 KWh in one month. Compare the new tarrif for the 100KWh that exceed the 2000 units, with that of the previous book year. (consumption in KWh 2000+- 3000) (new tarrif = 40,61) (previous tarrif= 33,02)​

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%