A) Beale Manufacturing Company has a beta of 1.3, and Foley Industries has a beta of 0.70. The required return on an index fund that holds the entire stock market is 12%. The risk-free rate of interest is 3.5%. By how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places.

B) Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 1.05. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and use the proceeds to buy another stock with a beta of 1.60. What would your portfolio's new beta be? Do not round intermediate calculations. Round your answer to two decimal places.