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You are considering a new investment. The rate on T-bills is 3.5% and the return on...

You are considering a new investment. The rate on T-bills is 3.5% and the return on the S&P 500 is 9.8%. You have measured the non-diversifiable risk of the investment you are considering to be .7. What rate of return will you require on the investment?

13.30%

4.41%

4.63%

7.91%

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