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What can you conclude from your answers to part (b) of the previous problem and part (d) of this problem about the relation between firm
What can you conclude from your answers to part (b) of the previous problem and part (d) of this problem about the relation between firm size (market capitalization) and returns? (The results do not depend on the particular numbers in this problem. You are welcome to verify this for yourself by redoing the problems with another value for the market risk premium, and by picking the stock betas and market capitalizations randomly.)
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