You are considering a new investment the rate on t-bills is


You are considering a new investment. The rate on T-bills is 3.3% and the return on the S&P 500 is 8.5%. 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?

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Financial Management: You are considering a new investment the rate on t-bills is
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