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Company F has a beta of 0.5. The risk free rate is 4% and the expected return on the market portfolio is 10%. What should

Company F has a beta of 0.5. The risk free rate is 4% and the expected return on the market portfolio is 10%. What should be the expected return on Company F, if the CAPM is the correct model to use?

Please write your answer in percentage terms to one decimal place (7.2 percent is 7.2, not 0.072).

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