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AA Corporation's stock has a beta of 0 . 7 . The risk - free rate is 4 % , and the expected return on

AA Corporation's stock has a beta of

0.7 .

The risk

-

free rate is

4 %,

and the expected return on the market is

12 % .

What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place.

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