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CAPM AND REQUIRED RETURN . BAELE MANUFACTURING COMPANY HAS A BETA OF 1.1, AND FOLEY INDUSTRIES HAS A BETA OF 0.30. THE REQUIRED RETURN ON
CAPM AND REQUIRED RETURN .
BAELE MANUFACTURING COMPANY HAS A BETA OF 1.1, AND FOLEY INDUSTRIES HAS A BETA OF 0.30. THE REQUIRED RETURN ON AN INDEX FUND THAT HOLDS THE ENTIRE STOCK MARKET IS 11%. THE RISK-FREE RATE OF INTEREST IS 4.5%. BY HOW MUCH DOES BAELE
S REQUIRED RETURN EXCEED FOLEY'S REWIRED RETURN?
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