To solve this problem and calculate the security's equilibrium rate of return, you should sum<span> the security's default risk premium (2.00%),</span> the inflation risk premium (1.75%), the real risk-free rate (3.50%), the security's liquidity risk<span> premium (0.25%) </span><span>and the maturity risk premium (0.85%). So, you have:
ij*=2.00%+1.75%+3.50%+0.25%+0.85%
</span> ij*=8.35%<span>
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[2<span>] </span>x<span>. </span><span>437 is the answer
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The answer is the second one
If you want a fast explanation
You have to remember that the minus sign indicates which direction the hyperbole will follow, if the minus is on x, that indicates the hyperbole will be vertical, and if the minus is in y, then it'll be horizontal
If you check the vertices points those indicates the length of 2a thus thatll be 6
To get the center just use middle point equation and you'll get (1,3)
Just to know, a indicates the distance from the center to the vertices, b indicates how wide the hyperbole box is, and c indicates the distance from center to focis
A=3
B=?
C=6
We use Pythagoras so

Thus you get

With that data now you can get the equation
You know that below (y-3)^2 there should be a^2 so that means there will be the 9
And in the (x-1)^2 there should be b^2 so that means there will be the 27
PD. The 3 besides y, and 1 besides x represent the center
Answer:
To multiply two minus numbers they will result as a positive number.
the product of any numbers when there is a negtive will always have 2 negtives invlved form three numbers including the answer.
-4 x -1.5 is the same as 4 x 1.5
the answer is 6
Three numbers like -1 x 4 will also be 2 numbers of negative.
= -4
We change this to -4 x 1.5 and shows the answer as -6
But the question had 2 negative numbers already and the answer is just positive 6.