$27$

$2$ points

Assume you're working as a quant $($i$.$e$.,$ a quantitative financial analyst$)$ in a hedge fund. Using regression analysis, you and your team identify a set of factors that have never been discussed in either the finance literature or mass media and seem to positively predict portfolio returns in out$-$of$-$sample tests. If you identify that the factors have coefficients $($i$.$e$.,$ "betas"$)$ of $1\mathrm{.}38,0\mathrm{.}96,$ and $1\mathrm{.}27,$ what is the expected return on your portfolio if the factors' respective risk premiums are $3\mathrm{.}60\%,3\mathrm{.}02\%,$ and $12\mathrm{.}70\%.$ Assume the risk$-$free rate is $3\mathrm{.}26\%.$ Write your answer as a percent, rounded to two decimals. $($Hint: input a number formatted like $50\mathrm{.}20,30\mathrm{.}37,$ etc.$)$

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