Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Beale Manufacturing Company has a beta of 1.1, and
Foley Industries has a beta of 0.30. The required return on an index fund that holds the
entire stock market is 11%. The risk-free rate of interest is 4.5%. By how much does Beale’s
required return exceed Foley’s required return?
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