An analyst has modeled the stock at ABC company using a two-factor model based on Arbitrage Pricing Theory (APTI. The expected risk-free rate is 3% plus the impact of two link factors. The numerical value of the expected return for the first factor is 8%, and the numerical value of expected return on the second factor is 10%. The sensitivity of the first factor is 0.4 and sensitivity of the second factor is 0.6. What is ABC's required or predicted return? Select one: a. 13% b. 9.2% C. 16% d. 14.5%