Answer both a$1$ and a$2$

Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums.

Requlred:

The return on a particular stock is generated according to the following equation:

$r=13\%+\frac{1\mathrm{.}4}{+}0\mathrm{.}8R+1\mathrm{.}10C+e$

a$-1.$ Find the equilibrium rate of return on this stock using the APT. The T$-$bill rate is $6\%.$

Note: Do not round Intermedlate colculatlons. Round your answer to $1$ decimal place.

a$-2.$ Is the stock over$-$or underpriced?

a$-1.$ Equilibrium rate of return