AA Corporation's stock has a beta of 2.1. The risk-free rate is 6% and the expected return on the market is 10%. What is the required rate of return on AA's stock? Round your answer to two decimal places. %

AA Corporation's stock has a beta of 2.1. The risk-free rate is 6% and the expected return on the market is 10%. What is the required rate of return on AA's stock? Round your answer to two decimal places. %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 7P

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Required Rate of Re
AA Corporation's stock has a beta of 2.1. The risk-free rate is 6% and the expected return on the market is 10%. What is the required rate of
return on AA's stock? Round your answer to two decimal places.
%

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