Question: 7. Problem 8.10 (CAPM and Required Return) eBook Problem Walk-Through Beale Manufacturing Company has a beta of 1.6, and Foley Industries has a beta of

7. Problem 8.10 (CAPM and Required Return) eBook Problem Walk-Through Beale

7. Problem 8.10 (CAPM and Required Return) eBook Problem Walk-Through Beale Manufacturing Company has a beta of 1.6, and Foley Industries has a beta of 0.70. The required return on an index fund that holds the entire stock market is 14%. 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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