You have risen through the ranks of a coffeecomany, from the lowlygreen-apron barista to the coveted blackapron, and all the way to CFO. A quick internet check shows that yourcompany's beta is 0.6. Therisk-free rate is 4.5 % and you believe the market risk premium to be 4.6 %. What is your best estimate ofinvestors' expected return on yourcompany's stock(its cost of equitycapital)?

he expected return is nothing ____%.