Suppose stock returns can be explained by the following three-factor model:

R_i = R_F + ₁F₁ + ₂F_{2 3}F₃

Assume there is no firm-specific risk. The information for each stock is presented here:

	1	2	3
Stock A	1.11	.43	.06
Stock B	.73	1.28	.18
Stock C	.64	.10	1.17

The risk premiums for the factors are 5.9 percent, 5.6 percent, and 6.3 percent, respectively. You create a portfolio with 20 percent invested in Stock A , 20 percent invested in Stock B , and the remainder in Stock C.

What is the expression for the return on your portfolio? (Round your answers to 2 decimal places. (e.g., 32.16))

	Factor Beta
Factor F1
Factor F2
Factor F3

If the risk-free rate is 3.4 percent, what is the expected return on your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return _______%