A researcher has determined that a two-factor model is appropriate to determine the return on a stock. The factors are the percentage change in GNP and an interest rate. GNP is expected to grow by 3.2 percent and the interest rate is expected to be 2.3 percent. A stock has a beta of 1.3 on the percentage change in GNP and a beta of -0.47 on the interest rate. If the expected rate of return on the stock is 10.7 percent, what is the revised expected return on the stock if GNP actually grows by 4 percent and the interest rate is 2.1 percent? Shows all the step and formula. Don't round off until you get the answer.