Question
Problem 8-10 CAPM and required return Beale Manufacturing Company has a beta of 1.9, and Foley Industries has a beta of 0.8. The required return
Problem 8-10 CAPM and required return
Beale Manufacturing Company has a beta of 1.9, and Foley Industries has a beta of 0.8. The required return on an index fund that holds the entire stock market is 12%. The risk-free rate of interest is 3%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
%
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
