Question 8 (1 point) You want to use a three-factor return model to calculate the alpha that an investment manager generated. The portfolio has a market beta of 0.9, an inflation rate beta of 1.4, and a GDP growth rate beta of 1.2. The market risk premium is 5.6% per year, the inflation rate risk premium is 3.1% per year, and the GDP growth rate risk premium is 2.4% per year. The risk-free interest rate is 2.5% per year. What is the stock's annual expected return estimated by the model? 1) 12% 2) 13.5% 3) 14.7% 4) 15.6% 5) 14.2%