Fama-French Three-Factor Model

An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 12%, the return on the SMB portfolio (r_SMB) is 3.3%, and the return on the HML portfolio (r_HML) is 5.2%. If a_i = 0, b_i = 1.2, c_i = -0.4, and d_i = 1.3, what is the stock's predicted return? Do not round intermediate calculations. Round your answer to two decimal places.

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