Answer:
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Step-by-step explanation:
Every single one of those expressions factor. When factored, this is what we have:

. After canceling out like factors, what we are left with is this:

. That means that b = 9, c = 1, and d = -2
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%
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