CAPM AND REQUIRED RETURN Beale Manufacturing Company has a beta of 1, and Foley Industries has a beta of 0.85. The required return on an index fund that holds the entire stock market is 9%. The risk-free rate of interest is 3.25%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places. % CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.5% rate of inflation in the future. The real risk-free rate is 2%, and the market risk premium is 5.5%. Mudd has a beta of 1.3, and its realized rate of return has averaged 11% over the past 5 years. Round your answer to two decimal places. %