A stock has three risk factors with loadings of $0\mathrm{.}78,1\mathrm{.}3$ and $1\mathrm{.}1.$ The first risk factor is

the same as the CAPM. The other two factors have risk premia of $3\mathrm{.}4\%$ and $4\mathrm{.}8\%$ p$.$a$.$

respectively. Given that the stock is believed to be fairly priced, has an expected return

of $13\mathrm{.}7\%$ and the US treasury bill rate is $1\mathrm{.}53\%$ p$.$a$.,$ what is the expected return on the

market for the coming year?

Answer: