Overton Markets stock has an expected return of 7.8 percent and betas of: GNP = 1.06; I = 1.01; and Ex = .52. This expectation is based on a three-factor model with expected values of: GNP growth of 2.6 percent; inflation of 3.1 percent; and export growth of 1.4 percent. However, actual growth in these factors turns out to be 3.1 percent, 2.6 percent, and .2 percent, respectively. Calculate the stock's total return if the company announces that an important patent filing has been granted sooner than expected and will earn the company 5 percent more in return.

Select one:

a.16.02%

b.12.20%

c.11.55%

d.10.90%

e.11.02%