Question: Consider the following multifactor (APT) model of security returns for a particular stock. Factor Factor Beta Factor Risk Premium Inflation 1.01 0.06 Industrial production 0.48

Consider the following multifactor (APT) model of security returns for a particular stock. Factor Factor Beta Factor Risk Premium

Inflation 1.01 0.06 Industrial production 0.48 0.08 Oil prices 0.24 0.03

If T-bills currently offer a 0.04 yield, find the expected rate of return on this stock if the market views the stock as fairly priced.

Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

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