Question: You have a proprietary multifactor linear asset pricing model which you use to estimate your stock returns. The stock you are currently attempting to forecast

You have a proprietary multifactor linear asset pricing model which you use to estimate your stock returns. The stock you are currently attempting to forecast has factor loadings of 1.8, 1, and 1 respectively. At the same time, these factors have estimated risk premia (annual) of 2.7%, 1.8%, and 1%.

Given you believe the risk-free rate to be 2% this year, what is your forecasted return for the stock you are currently evaluating? Please give your return in whole numbers, if you compute an answer of 10.2% enter the value 10.2

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