Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums. Factor Risk Premium Industrial production (I) 7 % Interest rates (R) 2 % Consumer confidence (C) 3 % The return on a particular stock is generated according to the following equation: r = 17% + 1.6I + 0.9R + 1.20C + e

a-1. Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 9%. (Do not round intermediate calculations. Round your answer to 1 decimal place.)