Problem $12-3$ Factor Models

Suppose a factor model is appropriate to describe the returns on a stock. The current expected return on the stock is $11\mathrm{.}2$ percent. Information about those factors is presented in the following chart:

$\backslash$table$[[$Factor$,,$Expected Value,Actual Value$],[$Growth in$,1\mathrm{.}95,3\mathrm{.}2\%,3\mathrm{.}7\%$