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Fama-French Three-Factor Model An analyst has modeled the stock of a company using a Fama-French three-factor...

Fama-French Three-Factor Model An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 5%, the market return is 12%, the return on the SMB portfolio (rSMB) is 2.3%, and the return on the HML portfolio (rHML) is 5.5%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's predicted return? Round your answer to two decimal places. %

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