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1. Suppose the covariance between the returns of the stock of Poul Inc. and the returns on the Whilshire 5000 is 0.018. If the standard

1. Suppose the covariance between the returns of the stock of Poul Inc. and the returns on the Whilshire 5000 is 0.018. If the standard deviation of market returns is 0.018, what is the beta of the stock?

2. Schulman incorporated is considering investing in a project with the following expected cash flows: -1,000, 640, 1,660, -210. If Schulman's expected cost of capital is 0.08, what is the expected NPV of the project?

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