Answer:
He need to earn 32 points on part 2.
It should be just 12b, since they all have the same exponent, they can all be combined.
Calculate the risk measure (beta) compared to the returns of asset and market premium.
1.4 = 4 + 9((rm^-4)
1.4 = 9rm ^-32
33.4 = 9rm
Rm = 3.71
The answer is 3.71