Question
CAPM and required return Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.6. The required return on an
CAPM and required return
Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.6. The required return on an index fund that holds the entire stock market is 11%. The risk-free rate of interest is 5.5%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
%
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The Practical Guide To Wall Street Equities And Derivatives
Authors: Matthew Tagliani
1st Edition
0470383720, 978-0470383728
