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4. The estimated factor sensitivities for Pacific Energy and the risk premiums associated with those factors are given below: Beta Risk premium Factor 1 1.20

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4. The estimated factor sensitivities for Pacific Energy and the risk premiums associated with those factors are given below: Beta Risk premium Factor 1 1.20 4.5% Factor 2 -0.50 2.7% Factor 3 -0.15 4.3% Calculate the required return using these estimates. Assume the T-bill rate is 4.7%

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