Required:

Suppose two factors are identified for the U$.$S$.$ economy: the growth rate of industrial production, IP$,$ and the inflation rate, IR$.$ IP is expected to be $4\%$ and IR $6\%.$ A stock with a beta of $1$ on IP and $0\mathrm{.}9$ on IR currently is expected to provide a rate of return of $12\%.$ If industrial production actually grows by $5\%,$ while the inflation rate turns out to be $9\%,$ what is your best guess for the rate of return on the stock? $($Round your answer to $1$ decimal place.$)$