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Mr . Smart Firm has a beta of 1 . 1 , and Ms . Genius Company has a beta of 0 . 6 .

Mr. Smart Firm has a beta of 1.1, and Ms. Genius Company has a beta of 0.6. The required return on an index fund that holds the entire stock market is 14.1%. The risk-free rate of interest is 4.4%. By how much does Mr. Smart Firms required return exceed Ms. Geniuss required return?

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