Q 12. The risk-free rate is

3.2% and you believe that the S&P 500's excess return will be 8.9% over the next year. If you invest in a stock with a beta of

1.3 (and a standard deviation of 30%), what is your best guess as to its expected excess return over the next year?

Part 1

The expected excess return over the next year is %. (Round to two decimal places.)