Required return exceed foley required return

Reference no: EM131350857

CAPM and required return

Beale Manufacturing Company has a beta of 1.9, and Foley Industries has a beta of 0.6. The required return on an index fund that holds the entire stock market is 9%. The risk-free rate of interest is 5%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.

Reference no: EM131350857

Questions Cloud

What is the tlv-twa for phosgene : What is the TLV-TWA for phosgene? Note: Because it is a hazardous gas, phosgene is often sold as a solution in toluene - don't confuse the TWA for phosgene with the TWA for the toluene solvent.

Estimate is difference between the annual inflation rates : Suppose the spot and three-month forward rates for the yen are ¥79.85 and ¥79.16, respectively. What would you estimate is the difference between the annual inflation rates of the United States and Japan?

Describe the convicted murderer you selected : Describe the convicted murderer you selected.Describe any social, environmental, psychological, and/or biological factors that may have contributed to the murderer's behavior and explain how.

Find velocity of the bore relative to a stationary observer : A tidal bore is moving upstream into a river of depth 1 m, and constant width, and the bore raises the water level by 1 m. The river is flowing downstream at a steady velocity of 2 m/s.

Required return exceed foley required return : Beale Manufacturing Company has a beta of 1.9, and Foley Industries has a beta of 0.6. The required return on an index fund that holds the entire stock market is 9%. The risk-free rate of interest is 5%. By how much does Beale's required return excee..

What was meant by near-miss confined space fatality : CHE 320- Explain what was meant by "near-miss confined space fatality" in the article. What is the main subject of the legal dispute between Garcia's family and Reynolds?

Find the water depth behind the surge : A river of depth 2 m flows downstream at 1 m/s. A surge of depth H moves up the river at 5 m/s relative to a stationary observer on the bank of the river. Find H.

Discuss about the corporate social responsibility : Evaluate the likelihood of traditional corporations using social responsibility as an effective competitive strategy. Specify at least one (1) way that a company with which you are familiar can use (or has used) social responsibility as a competit..

Determine beta coefficient for stock : Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 11.75%; rRF = 3.15%; rM = 8%.

User Account

All Pages