After you run the following time$-$series regression:

$R_{t+1}=+R{M}_t+lo{n}_{t+1}$

$,$ where $R_t$ is the return of stock A in month $t+1,R{M}_t$ is the stock market

return in month $t.$ You find that

hat$()=0\mathrm{.}05$

and

hat$()=0\mathrm{.}3$

$.$ Suppose the current month stock market return is $10\%.$ What is the predicted

return of stock A next month, according to your model?