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Bradford Manufacturing Company has a beta of 1.4, while Farley industries has a beta of 0.8. The required return on an index fund that holds
Bradford Manufacturing Company has a beta of 1.4, while Farley industries has a beta of 0.8. The required return on an index fund that holds the entire stock market is 13.7%. The risk-free rate of interest is 4.3%. By how much does Bradfords required return exceed Farleys required return?
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