Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. Factor Risk Premium Industrial Production (IP) 6% Interest Rates (R) 2% Consumer Confidence (C) 4% The return on a particular stock is generated according to the following equation: r = 15% + 1.0(IP) + 0.5(R) + 0.75(C) + e Find the equilibrium rate of return on this stock using the APT. The T-Bill rate is 6%. Is the stock over- or underpriced? a. The equilibrium rate of return: % b. If you find stock is overpriced, write 1; if you find that the stock is underpriced, write 2