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
This basically says all the steps ! If you have any questions just tell me :)
Answer:
I plotted it out on the graph and here it is:
44 nickels because you just add 5 intill you get 220
The answer is -6 is less than 3