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CAPM and required return

Beale Manufacturing Company has a beta of 2.2, and Foley Industries has a beta of 0.45. The required return on an index fund that holds the entire stock market is 12%. The risk-free rate of interest is 4.5%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92071991

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