Probleman analyst has modeled the stock of crisp trucking, Ask an Expert

Accounting

Problem:

An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 6% the expected return on the first factor (r1) is 12% and the expected return on the second factor (r2) is 8%. If bi1 = 0.7 and bi2 = 0.9

Required:

Question: What is Crisp's required return?

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171958

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