What is minimum level of annual return

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The risk free rate on a 10-year Treasury is 2.6%, annualized. Suppose, you also looked up the annual rate of change in the S&P500 market index, and it is 7%. You are considering a stock with a beta that is 30% more volatile than the overall market beta, which is always presumed to be 1. What is the minimum level of annual return that you would require on this investment? Explain and show calculations using the CAPM.

Reference no: EM132009619

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