Given that the S&P 500 index returned –1.97% during the year from March 2008 to March 2009 (according to Yahoo !Finance) and the 10-year Treasury bond (alternative proxy for the risk-free rate)...

Given that the S&P 500 index returned –1.97% during the year from March 2008 to March 2009 (according to Yahoo !Finance) and the 10-year Treasury bond (alternative proxy for the risk-free rate) yielded an average of 2.65% during the same period, recomputed the company’s required rate of return using the beta information found on the company’s information sheet above. What conclusion can be drawn from this number?