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CAPM AND REQUIRED RETURN

Beale Manufacturing Company has a beta of 1, and Foley Industries has a beta of 0.35. The required return on an index fund that holds the entire stock market is 8.5%. The risk-free rate of interest is 6.25%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places. %

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Financial Management, Finance

Category:- Financial Management
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