=+The risk-free rate of return is 6.5 per cent and the risk premium on the average share

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=+The risk-free rate of return is 6.5 per cent and the risk premium on the average share has been 5 per cent for decades, Blueberry is in a higher systematic risk class than the average share and therefore the risk premium needs to be adjusted by a beta factor of 1.2.

Required Calculate the historic price-earnings ratio.

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