4. Fullerton-Bristol, Inc., has a beta of .90, a market price per share of $27.20, and earnings per share of $3.40. The risk-free rate is 6 percent, the price/eamings ratio for the market portfolio is 12 times, and Fullerton-Bristol is in the sixth decile with respect to market capitalization (10 is the largest). Suppose the expected return for a security is expressed as

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R, = Rf + .08(P,) - .001(PIE, - PIE,) - .002 (size)

where P/E, is the price/eamings ratio of the market portfolio and size is the decile of market capitalization. What is the stock's expected return?