1. AA Corporation's stock has a beta of 1.3. The risk-free rate is 5%, and the expected return on the market is 10%. What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place.

2.

Suppose r_RF = 4%, r_M = 9%, and r_A = 10%.

1. Calculate Stock A's beta. Round your answer to one decimal place.

2. If Stock A's beta were 2.0, then what would be A's new required rate of return? Round your answer to one decimal place.