Question: Problem 8.10 (CAPM and Required Return) eBook Problem Walk-Through Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.30.

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

Problem 8.10 (CAPM and Required Return) eBook Problem Walk-Through Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.30. The required return on an Index fund that holds the entire stock market is 12%. The risk- free rate of interest is 4.5%. 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. % Grade it Now Save & Continue Continue without saving

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