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Determine how much does gul ahmed required return

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Question 1: Gul Ahmed Textiles has a beta of 1.45, while Al-Karam Textiles has a beta of 0.85. The required return on an index fund that holds the entire stock market is 12.0%. The risk-free rate of interest is 5%. By how much does Gul Ahmed's required return exceed Al-Karam's required return?

Reference no: EM132569174

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