You are using APT model to select stock. Suppose that three factors have been identified for the U.S. economy: the growth rate of industrial production (IP), GDP growth, and the inflation rate, IR. The expected value is 4%,3% and 2% respectively. A stock with a beta of 0.6 on IP, 0.8 on GDP growth, 1 on IR currently is expected to provide a rate of return of 10%. T-bills currently offer a 2% yield. If realized IP grows by 8%, GDP growth of 2%, and the inflation rate turns out to be 9%, what is revised expected rate of return on the stock? a. 12.8% b. 16.2% c. 17.6% d. 18.6%