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I don't understand this. Please thoroughly explain. Im trying to complete with paper and pencil. Please fully explain how I show calculate not understanding how.

I don't understand this. Please thoroughly explain. Im trying to complete with paper and pencil. Please fully explain how I show calculate not understanding how. Trying to carry all calculations to two decimal places.P7-23 Integrative: Risk and valuation Given the following information for the stock of Foster
Company, calculate the risk premium on its common stock.
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