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For questions 2-4, use the following information: Here are the data on two companies. The T-biII rate is 4% and the market risk premium is

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For questions 2-4, use the following information: Here are the data on two companies. The T-biII rate is 4% and the market risk premium is 6%. Company $1 Discount Store Everything $5 Forecasted Return 12% 11% Standard deviation of 8% 10% returns Beta 1.5 1.0

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