Question: 10. Problem 8.10 (CAPM and Required Return) Beale Manufacturing Company has a beta of 1.3, and Foley Industries has a beta of 0.50. The required

10. Problem 8.10 (CAPM and Required Return) Beale Manufacturing Company has

10. Problem 8.10 (CAPM and Required Return) Beale Manufacturing Company has a beta of 1.3, and Foley Industries has a beta of 0.50. The required return on an index fund that holds the entire stock market is 12%. The risk-free rate of interest is 2.5%. 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. %

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