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Question

Lipton Manufacturing Company has a beta of 1.45, while Smith Industries has a beta of 0.85. The required return on an index fund that holds the entire stock market is 12.0 percent. The risk-free rate of interest is 5 percent. By How much does Lipton's required return exceed Smith's required return?

Submitted: 298 days and 6 hours ago.
Category: Finance
Value: $15
Status: CLOSED

Accepted Answer

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Soln

 

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Expert: RD
Pos. Feedback: 99.3 %
Accepts: 
Answered: 1/28/2009

Certified Public Accountant (CPA)

MBA, CPA

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