CAPM and required return, Bradford Manufacturing Company

CAPM and required return

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Reference no: EM13890268

CAPM and required return

Bradford Manufacturing Company has a beta of 2.2, while Farley Industries has a beta of 0.5. The required return on an index fund that holds the entire stock market is 9.5%. The risk-free rate of interest is 3%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

Reference no: EM13890268

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