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Business, 11.03.2020 02:48 princessss30188

Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. Factor Risk PremiumIndustrial production (I) 6% Interest rates (R) 2% Consumer confidence (C) 3%The return on a particular stock is generated according to the following equation: r= 13% + 1.3I + 0.8R + 1.00C+ e. Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 5%. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

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