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1. Stock of Ford Inc. (F) has a beta of 2.5, while stock of AT&T Inc. (T) has a beta of 0.5. The required return

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1. Stock of Ford Inc. (F) has a beta of 2.5, while stock of AT&T Inc. (T) has a beta of 0.5. The required return on an index fund that holds the entire stock market is 8 percent. The risk-free rate of interest is 1 percent. By how much does F's required return exceed T' required return? (CAPM) ri=rfr+ (pm -rfr) Ford -beta 2.5 rral) 185 Trail AT 875

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