Question: Step by step solution for both ques... eBook Stock R has a beta of 2.0, Stock S has a beta of 0.45, the required return

Step by step solution for both ques...

eBook Stock R has a beta of 2.0, Stock S has a beta of 0.45, the required return on an average stock is 12%, and the risk-free rate of return is 3%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places. 19.8 ofoBeale Manufacturing Company has a beta of 1.5, and Foley Industries has a beta of 0.80. The required return on an index fund that holds the entire stock market is 14%. The risk-free rate of interest is 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

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