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CAPM and required return Bradford Manufacturing Company has a beta of 1.4, while Farley Industries has a beta of 0.75. The required return on an

CAPM and required return

Bradford Manufacturing Company has a beta of 1.4, while Farley Industries has a beta of 0.75. The required return on an index fund that holds the entire stock market is 11%. The risk-free rate of interest is 6.75%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

%

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