Required return on index fund that holds entire stock market

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Beale Manufacturing Company has a beta of 2.2, and Foley Industries has a beta of 0.5. The required return on an index fund that holds the entire stock market is 9.5%. 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.

Reference no: EM131261463

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