Bradford required return exceed farley required return

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Reference no: EM131589591

CAPM and required return Bradford Manufacturing Company has a beta of 1.9, while Farley Industries has a beta of 0.7. The required return on an index fund that holds the entire stock market is 8%. The risk-free rate of interest is 5.75%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

Reference no: EM131589591

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