Answer:
3/8
Step-by-step explanation:
1/8 of the bag is blue, 1/2 is red add that and you get 5/8 then subtract 8/8 with 5/8 and that gives you 3/8.
This is the formula for computing the required rate of return in a market: E(R)<span> = Rf + ß( R<span>market </span>- R<span>f </span>). This is called as the Capital Asset Pricing Model (CAPM). The E(R) represents the required rate of return; the Rf is the risk-free rate; the </span>ß is the beta coefficient (which we are looking for); and the Rmarket is the rate of return on the market. Substituting the values to this formula, you can come up with the beta coefficient of 1.4.