Question: 5. Problem 8.10 (CAPM and Required Return) eBook Problem Walk-Through Beale Manufacturing Company has a beta of 1.3, and Foley Industries has a beta of

5. Problem 8.10 (CAPM and Required Return) eBook Problem Walk-Through Beale Manufacturing Company has a beta of 1.3, and Foley Industries has a beta of 0.70. The required return on an index fund that holds the entire stock market is 13%. 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. 96

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