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The risk free rate on Treasury bill is 2%. The annual rate of return onn the DowJones market index is 7%. You are considering a

  1. The risk free rate on Treasury bill is 2%. The annual rate of return onn the DowJones market index is 7%. You are considering a stock with a beta that is 30% more volatile than the overall market beta. What is the minimum level of annual return that you would require on this investment? Choose one of the following

    A)

    5.5%

    B)

    2%

    C)

    8.5%

    D)

    6.5%

    E)

    5%

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