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Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas). The zero-beta return (I0)=2%, and

Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas). The zero-beta return (I0)=2%, and the risk premia are I1=10%,I2=8%. Assume that all three stocks are currently priced at $50. Calculate the expected return for stock Y. (Keep 3 decimals)

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