Question
CAPM and required return Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.3. The required return on an
CAPM and required return Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.3. The required return on an index fund that holds the entire stock market is 8.5%. The risk-free rate of interest is 3.25%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places. %
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
