Answer:
13
Step-by-step explanation:
f(x) = 10/2 + 8 = 5 + 8 = 13
Answer:
Expected rate of return is 10.3%
Step-by-step explanation:
CAPM calculate the expected return by using the risk free rate market premium and beta of investment. It helps to decided the additional investment in a well diversified portfolio.
Formula of CAPM to calculate the rate of return
Rate of Return = Risk free rate + beta ( Risk premium )
Rate of Return = 4% + 0.7 ( 9% )
Rate of Return = 4% + 0.7 ( 9% )
Rate of Return = 10.3%
The vertex is (2,-4) and it is a minimum