Consider a three-factor APT model. The factors and associated risk premiums are:

Factor	Risk Premium (%)
Change in gross national product (GNP)	+6.9
Change in energy prices	0.8
Change in long-term interest rates	+3.6

Calculate expected rates of return on the following stocks. The risk-free interest rate is 4.1%.

1. A stock whose return is uncorrelated with all three factors. (Enter your answer as a percent rounded to 1 decimal place.)

2. A stock with average exposure to each factor (i.e., with b = 1 for each). (Enter your answer as a percent rounded to 1 decimal place.)

3. A pure-play energy stock with high exposure to the energy factor (b = 2.2) but zero exposure to the other two factors. (Enter your answer as a percent rounded to 2 decimal places.)

4. An aluminum company stock with average sensitivity to changes in interest rates and GNP, but negative exposure of b = 1.5 to the energy factor. (The aluminum company is energy-intensive and suffers when energy prices rise.) (Enter your answer as a percent rounded to 2 decimal places.)

a.	Expected rate of return		%
b.	Expected rate of return		%
c.	Expected rate of return		%
d.	Expected rate of return		%