Question: An analyst used a two-factor Arbitrage Pricing Theory (APT) model to assess Crisp Truckings stock. Given a 6% risk-free rate, an expected return of 12%

An analyst used a two-factor Arbitrage Pricing Theory (APT) model to assess Crisp Trucking’s stock. Given a 6% risk-free rate, an expected return of 12% for the first factor (r1), and an expected return of 8% for the second factor (r2), with bi1 = 0.7 and bi2 = 0.9, what is Crisp’s required return?

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