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What is the required rate of return on aa stock

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Reference no: EM132013256

AA Corporation's stock has a beta of 1.9. The risk-free rate is 4% and the expected return on the market is 10%. What is the required rate of return on AA's stock?

Are the assumptions below correct?

b=1.9

rRF=4%

rM=10%

Calculations:

ri = 1.9+(10%-4%)*1.9

Reference no: EM132013256

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