CAPM AND REQUIRED RETURN Bradford Manufacturing Company has a beta of 1.45, while Farley Industries has a beta of 0.85. The required return on an index fund that holds the entire stock market is...



Book name: Fundamental financial management 12th Edition


Author: Joel F Houston,Eugene F Brigham


Chapter: 8 . (Problem 8-10)


Please solve this  math.



CAPM AND REQUIRED RETURN Bradford Manufacturing Company has a beta of 1.45,<br>while Farley Industries has a beta of 0.85. The required return on an index fund that holds<br>the entire stock market is 12.0%. The risk-free rate of interest is 5%. By how much does<br>Bradford's required return exceed Farley's required return?<br>

Extracted text: CAPM AND REQUIRED RETURN Bradford Manufacturing Company has a beta of 1.45, while Farley Industries has a beta of 0.85. The required return on an index fund that holds the entire stock market is 12.0%. The risk-free rate of interest is 5%. By how much does Bradford's required return exceed Farley's required return?

Jun 04, 2022
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