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Assume an investor requires an additional 3.5% for each unit of risk he faces. He is considering buying a security with 2 units of risk

Assume an investor requires an additional 3.5% for each unit of risk he faces. He is considering buying a security with 2 units of risk associated with it. The risk-free rate is 3%. What is the required return on this security for him?

a. 12%

b. 10%

c. 7%

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