Answer:
0.02 or 2% = Beta
Step-by-step explanation:
Given that,
Risk-free rate = 7 percent
Expected return on the market = 10 percent
Expected return on Security J = 13 percent
Therefore, the beta of Security J is calculated as follows;
Expected return on Security J = Risk-free rate + Beta (Expected return on the market - Risk-free rate)
13 percent = 7 percent + Beta (10 percent - 7 percent)
0.13 - 0.07 = 0.03 Beta
0.06 = 0.03 Beta
0.06 ÷ 0.03 = Beta
0.02 or 2% = Beta
The answer to the question
Answer:
The solutions are
and 
Step-by-step explanation:
we have

Group terms that contain the same variable, and move the constant to the opposite side of the equation

Factor the leading coefficient

Complete the square. Remember to balance the equation by adding the same constants to each side.


Rewrite as perfect squares


square root both sides





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