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andriy [413]
3 years ago
8

If the risk-free rate is 8 percent and the market risk premium is 2 percent, what is the required return for the market?

Mathematics
1 answer:
mariarad [96]3 years ago
3 0
28 percent is the answer
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Answer:

Option A

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According to the distance formula , for any 2 points P & Q whose coordinates are (x¹ , y¹) and (x² , y²) respectively. So ,

PQ = \sqrt{(x^{2} - x^{1} )^{2} + (y^{2} - y^{1})^{2} }

NOTE = HERE x² , y² DOESN'T MEAN THE SQUARES OF x & y . THEY ARE JUST COORDINATES.

According to the question ,

Coordinate of C = (2 , -1)

Coordinate of D = (5 , 3)

Using distance formula ,

CD = \sqrt{(5-2)^{2} + (3 -(-1))^{2} }

=> CD = \sqrt{3^{2} + 4^{2} } = \sqrt{9 + 16} = \sqrt{25} = 5

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