Difference between kamaths and gehrs

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Reference no: EM13120477

Kamath Manufacturing Company has a beta of 1.15 , while Gehr Industries has a beta of 0.70. The required return on the stock market is 14.00%, and the risk-free rate is 3.50%. What is the difference between Kamath's and Gehr's required rates of return? (Hint: First, find the market risk premium, then find required returns on the stocks.)

Reference no: EM13120477

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