Required return on an index fund

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Bradford Manufacturing Company has a beta of 1.2, while Farley Industries has a beta of 0.3. The required return on an index fund that holds the entire stock market is 11.5%. The risk-free rate of interest is 6.75%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

Reference no: EM13767769

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