Question $3$

The beta of Ricci Co$.\text{'}$s stock is $3\mathrm{.}4$ and the risk$-$free rate of return is $9$ percent. If

the expected return on the market is $0\mathrm{.}16$ percent, then what should investors

expect as a return on Ricci Co$.?$ Round your answer to the nearest $\mathrm{.}0001$ without

using a percentage sign, for instance $15\mathrm{.}234\%$ should be written as $0\mathrm{.}1523.$