eBook

Problem Walk$-$Through

Beale Manufacturing Company has a beta of $1\mathrm{.}2,$ and rotey Industries has a beta of $0\mathrm{.}40.$ The required return on an index fund that holds the entire stock market is $11\%.$ The risk$-$free rate of interest is $5\mathrm{.}5\%.$ By how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

Check My Work

$0=$ rcon Key