Suppose all stocks obey an APT two-factor model. A given stock has a beta of .5 with respect to factor 1 and a beta of 1.5 with respect to factor 2. The risk-free rate is 2%, the risk-premium on factor 1 is 5% and the risk-premium on factor 2 is 8%. Assume that last year the actual value of Factor 1 was 2% higher than expected and the actual value of Factor 2 was 3% lower than expected. Given this extra information, what is your best guess of the return that the stock experienced last year