Assume that you are considering investing in small cap stocks, based upon research indicating that they earn more than large cap stocks, after adjusting for risk. You notice that the transactions costs (all up front, at the time of investing) of investing in small cap stocks is 5% and it is only 1% for large cap stock stocks. If large cap stocks are expected to earn 10% annually and your time horizon is three years, how much higher will the annual returns have to be on small cap stocks for you to break even on investing in the latter? Question 8 options: 1.43% 1.52% 1.67% 1.83% 2.00%