8-9 3-10 REQUIRED RATE OF RETURN Stock A has a beta of 1.3, Stock Bhas a beta of 0.6, the required return on an average stock is 11%, and the risk-free rate of return is 5%. By how much does the required return on Stock A exceed the required return Stock B? CAPM AND REQUIRED RETURN Bradford Manufacturing Company has a beta of 1.2, while Farley Industries has a beta of 0.7. The required return on an index fund that holds the entire stock market is 11.0%. The risk-free rate of interest is 4%. By how much does Bradford's required return exceed Farley's required return