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Paul Taug manages an SF Fund, a $3.5 million hedge fund. The required rate of return on the market is 11.00% and the risk-free rate

Paul Taug manages an SF Fund, a $3.5 million hedge fund. The required rate of return on the market is 11.00% and the risk-free rate is 5.00%.

What rate of return should investors expect (and require) on this fund?

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