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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
Expert:
RD
Pos. Feedback:
99.3 %
Accepts:
Answered:
1/28/2009
Certified Public Accountant (CPA)
MBA, CPA
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