25.2

An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 5%, the expected return on the first factor (r1) is 14%, and the expected return on the second factor (r2) is 8%. If bi1= 0.5 and bi2 =0.8, what is Crisp's required return? Do not round intermediate calculations. Round your answer to one decimal place. %