Suppose you are considering the purchase of a stock that is currently priced to offer a dividend yield of 1.2%. This dividend yield is based on an expected dividend payment of $1.47 that is to be paid in exactly one year. If you think the stock price will rise to $140 per share in one year, at which time it will also pay the cash dividend of $1.47, what beta would it need to have for this expectation to be consistent with CAPM? Assume that the risk-free rate is 4% and the market risk premium is 7%.

Group of answer choices

3.47

1.71

3.08

4.69