5.

You have a proprietary multifactor linear asset pricing model which you use to estimate your stock returns. The stock you are currently attempting to forecast has factor loadings of 0.5, 0.9, and 2.6 respectively. At the same time, these factors have estimated risk premia (annual) of 0.8%, 2.5%, and 0.7%. Given you believe the risk-free rate to be 2% this year, what is your forecasted return for the stock you are currently evaluating? Please give your return in whole numbers, if you compute an answer of 10.2% enter the value 10.2