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Look-Up uses the CAPM security market line to estimate its cost of equity. U.S. Treasury securities yield 2 percent. The expected return on the market

Look-Up uses the CAPM security market line to estimate its cost of equity. U.S. Treasury securities yield 2 percent. The expected return on the market is 7 percent. (Note that an expected return on the market is not the same as a market risk premium.) Look-Up's equity beta is 1.20. What is the Look-Up's equity required return?

A) 2%

B) 8%

C) 9%

D) 4%

E) 10%

F) 3%

G) 7%

H) 1%

I) 6%

J) 5%

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