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) 4 % Consumer confidence (C) 6 % The return on a particular stock is generated according to the following equation: r = 15% + 1.1I + 0.6R + 0.90C + e a-1.

Find the equilibrium rate of return on this stock using the APT. The T-bill rate is 7%. (Do not round intermediate calculations. Round your answer to 1 decimal place.)