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Suppose that the risk-free rate is 3% and the market portfolio has an expected return of 14% with a volatility of 25%. RGP Inc. has

Suppose that the risk-free rate is 3% and the market portfolio has an expected return of 14% with a volatility of 25%. RGP Inc. has a 40% volatility and a correlation with the market of 0.50. Assume that the CAPM assumptions hold. RGP Incs beta with the market and thus its expected return are closest to which of the choices below:

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