Question
CAPM and required return Beale Manufacturing Company has a beta of 2.2, and Foley Industries has a beta of 0.45. The required return on an
CAPM and required return
Beale Manufacturing Company has a beta of 2.2, and Foley Industries has a beta of 0.45. The required return on an index fund that holds the entire stock market is 12%. The risk-free rate of interest is 4.5%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
%
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New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
