Question: Problem 8-10 CAPM and required return Beale Manufacturing Company has a beta of 2, and Foley Industries has a beta of 0.8. The required return

Problem 8-10 CAPM and required return

Beale Manufacturing Company has a beta of 2, and Foley Industries has a beta of 0.8. The required return on an index fund that holds the entire stock market is 11%. The risk-free rate of interest is 6.25%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.

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