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I guess I should have worded the statement more as a question of "Should I expect better of the rifle with a heavier or different load?".
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Is it you or the rifle?
It's definitely you. You're expecting match grade accuracy out of cheap bulk ammo, and that's the problem.
I guess I should have worded the statement more as a question of "Should I expect better of the rifle with a heavier or different load?".
If you've never tested different ammo, how do you have a base point for what you should expect from the rifle? It could be an issue with the rifle, and a 3" group with that ammo is the best that the rifle can do.
That said, chances are better quality ammo will have better results. I find you can easily halve the group size of a rifle by using handloads or match grade ammo.
From the sounds of it, the rifle is performing quite acceptably. 2-2.5 MOA out of cheap bulk 55gr FMJ is more than acceptable. I rarely see a comparable AR that does much better, although the AR design does inherently lead to greater potential accuracy.
If you do some tests with different types of ammo, I'd be surprised if you can't achieve 1.5MOA consistently.