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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
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 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.
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