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Problem 6-2 Required Rate of Return AA Industries's stock has a beta of 1.7. The risk-free rate is 5%, and the expected return on the

Problem 6-2 Required Rate of Return

AA Industries's stock has a beta of 1.7. The risk-free rate is 5%, and the expected return on the market is 11%. What is the required rate of return on AA's stock? Round your answer to two decimal places.

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