Beale Manufacturing Company has a beta of 1.1, and Foley Industries has a beta of 0.30. The
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Beale Manufacturing Company has a beta of 1.1, and Foley Industries has a beta of 0.30. The required return on an index fund that holds the entire stock market is 11%. The risk-free rate of interest is 4.5%. By how much does Beale’s required return exceed Foley’s required return?
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An index fund will have a beta of 10 If r M is 110 given in the problem and the riskfree rate is 45 ...View the full answer
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Related Book For 
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
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