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Beale Manufacturing Company has a beta of 2.01, and Foley Industries has a beta of 0.88, the required return on an index fund that holds
Beale Manufacturing Company has a beta of 2.01, and Foley Industries has a beta of 0.88, the required return on an index fund that holds the entire stock market is 10.8%, and the risk-free rate of return is 1.4%. By how much does the required return on Beal's stock exceed the required return on the Foley's stock? State your answer to 2 decimal places.
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