Question: There is an investment that returned 7.6% while having a 7.4 PE ratio and a risk evaluation of 1. Estimate the return on this investment

There is an investment that returned 7.6% while having a 7.4 PE ratio and a risk evaluation of 1. Estimate the return on this investment assuming its 7.4 PE ratio and Risk evaluation of 1. What is the residual compared to the actual 7.6 return? |PE Ratio Risk Return |7.4 1.0 7.6 11.1 1.3 13.0 8.7 1.1 8.9 11.2 1.2 10.9 11.6 1.7 12.1 12.2 1.3 12.8 12.5 1.2 11.3 12.5 1.3 14.1 13.0 1.6 14.8 13.4 1.4 16.7

PLEASE SHOW STEPS AND BASIC FORMULAS USED FOR EQUATIONS AND CALCULATIONS.PREVIOUS CHEGG ANSWER CANNOT BE COMPREHENDED.

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