Required return exceed foley required return

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Reference no: EM131901712

CAPM AND REQUIRED RETURN

Beale Manufacturing Company has a beta of 2.3, and Foley Industries has a beta of 0.6. The required return on an index fund that holds the entire stock market is 9.5%. The risk-free rate of interest is 6.75%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.

Reference no: EM131901712

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