Capm and required return-foley required return

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Reference no: EM132036501

CAPM and required return

Beale Manufacturing Company has a beta of 1.9, and Foley Industries has a beta of 0.8. The required return on an index fund that holds the entire stock market is 12%. The risk-free rate of interest is 3%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.

Reference no: EM132036501

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