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Information of 2 companies are computed in the table below. T-bill rate is 5%, expected market return is 9% and standard deviation of market return

Information of 2 companies are computed in the table below. T-bill rate is 5%, expected market return is 9% and standard deviation of market return is 11.5%. What is the non-systematic risk (residual standard deviation) of both companies?

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Company Forecasted Return 9.5% Standard Deviation of Returns 20% Beta 1.8 B 8.5% 10%

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