Suppose stock returns can be explained by the following three-factor model:

R_i = R_F + ?₁F₁ + ?₂F₂ ? ?₃F₃

Assume there is no firm-specific risk. The information for each stock is presented here:

	?1	?2	?3
Stock A	2.10	1.10	.85
Stock B	.90	1.70	?.30
Stock C	.90	?.47	1.56

The risk premiums for the factors are 7.8 percent, 7.0 percent, and 7.4 percent, respectively. You create a portfolio with 30 percent invested in Stock A , 30 percent invested in Stock B , and the remainder in StockC.

What is the expression for the return on your portfolio? (Round your answers to 2 decimal places. (e.g., 32.16))

	Factor Beta
Factor F1
Factor F2
Factor F3

If the risk-free rate is 4.9 percent, what is the expected return on your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return

%