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how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places. % An index fund will have a beta of 1.0 . If rm is 14.0% (given in the problem) and the riskfree rate is 5.5%, you can calculate the market risk premium (RPM) calculated as rmrRFR as follows: r14.0%8.50%=rRF+(RPM)b=5.5%+(RPM)1.0=RPM. Now, you can use the RPM, the rRF, and the two stocks' betas to calculate their required returns. Beale: rB=rRF+(RM)b=5.5%+(8.50%)1.4=5.5%+11.90%=17.40% Foley: rF=rRF+(RPM)b=5.5%+(8.50%)0.2=5.5%+1.70%=7.20%. The difference in their required returns is: 17.40%7.20%=10.20% Solution Correct Response 5.5\%. 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. % how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places. % An index fund will have a beta of 1.0 . If rm is 14.0% (given in the problem) and the riskfree rate is 5.5%, you can calculate the market risk premium (RPM) calculated as rmrRFR as follows: r14.0%8.50%=rRF+(RPM)b=5.5%+(RPM)1.0=RPM. Now, you can use the RPM, the rRF, and the two stocks' betas to calculate their required returns. Beale: rB=rRF+(RM)b=5.5%+(8.50%)1.4=5.5%+11.90%=17.40% Foley: rF=rRF+(RPM)b=5.5%+(8.50%)0.2=5.5%+1.70%=7.20%. The difference in their required returns is: 17.40%7.20%=10.20% Solution Correct Response 5.5\%. 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. %