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Bradford Manufacturing Company has a beta of 1 . 4 5 , while Farley Industries has a beta of The required return on an index

Bradford Manufacturing Company has a beta of

1.45,

while Farley Industries has a beta of The required return on an index fund that holds the entire stock market is

12.5

percent. The risk

-

free rate of interest is percent. By how much does Bradford's required return exceed Farley's required return?

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