The risk-free rate of interest is 400 by how much does


CAPM and required return Bradford Manufacturing Company has a beta of 1.6, while Farley Industries has a beta of 0.35. The required return on an index fund that holds the entire stock market is 12.5%. The risk-free rate of interest is 4.00%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

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Finance Basics: The risk-free rate of interest is 400 by how much does
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