Bradford Manufacturing Company has a beta of 1.5, while Farley Industries has a beta of 0.8. The required return on an index fund that holds the entire stock market is 12.0%. The risk-free rate of interest is 4%. By how much does Bradford's required return exceed Farley's required return in percentage points?

Group of answer choices

8.0%

8.4%

2.8%

5.6%

12.0%