Question
Problem 8-10 CAPM and required return Bradford Manufacturing Company has a beta of 2.2, while Farley Industries has a beta of 0.75. The required return
Problem 8-10 CAPM and required return
Bradford Manufacturing Company has a beta of 2.2, while Farley Industries has a beta of 0.75. The required return on an index fund that holds the entire stock market is 13%. The risk-free rate of interest is 6.25%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.
%
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
