Bradford's required return = Risk-free rate + Beta(Market return - Risk-free rate) = 0.031 + 1.3(0.101 - 0.031) = 0.122 or 12.2%
Farley's required return = Risk-free rate + Beta(Market return - Risk-free rate) = 0.031 + 1.1(0.101 - 0.031) = 0.108 or 10.8%
Bradford's required return exceeds Farley's required return by = 12.2% - 10.8% = 1.4%
Question 26 3 pts Bradford Manufacturing Company has a beta of 1.3, while Farley industries has...
Beale Manufacturing Company has a beta of 1.3, and Foley Industries has a beta of 0.4. The required return on an index fund that holds the entire stock market is 13%. The risk-free rate of interest is 6.5%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
Beale Manufacturing Company has a beta of 1.1, and Foley Industries has a beta of 0.5. The required return on an index fund that holds the entire stock market is 11%. The risk-free rate of interest is 7%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
Beale Manufacturing Company has a beta of 1.1, and Foley Industries has a beta of 0.70. The required return on an index fund that holds the entire stock market is 13%. The risk-free rate of interest is 3.5%. 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. %
Beale Manufacturing Company has a beta of 1, and Foley Industries has a beta of 0.7. The required return on an index fund that holds the entire stock market is 11.5%. The risk-free rate of interest is 7%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.5. The required return on an index fund that holds the entire stock market is 8%. The risk-free rate of interest is 3%. 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.
Beale Manufacturing Company has a beta of 1.7, and Foley Industries has a beta of 0.35. The required return on an index fund that holds the entire stock market is 9.5%. 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.
Beale Manufacturing Company has a beta of 1.2, and Foley Industries has a beta of 0.60. The required return on an index fund that holds the entire stock market is 13%. 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.
CAPM and required return Beale Manufacturing Company has a beta of 2.5, and Foley Industries has a beta of 0.3. The required return on an index fund that holds the entire stock market is 9%. The risk-free rate of interest is 3.75%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
Problem 8-10 CAPM and required return Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.95. The required return on an index fund that holds the entire stock market is 10%. The risk-free rate of interest is 5.75%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.
8.9/8.10
Stock R has a beta of 2.5, Stock S has a beta of 0.55, the required return on an average stock is 9%, and the risk-free rate of return is 4%. 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. Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.70. The required return on an...