Problem 3-2 APT

An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 7%, the expected return on the first factor (r₁) is 10%, and the expected return on the second factor (r₂) is 8%. If b_i1 = 0.7 and b_i2 = 0.8, what is Crisp's required return? Round your answer to two decimal places.

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