Suppose that two factors have been identified for the Canadian economy: the growth rate of industrial production, IP$,$ and the inflation rate, IR$.$ IP is expected to be $3\%,$ and IR $5\%.$ A stock with a beta of $1$ on IP and $0\mathrm{.}5$ on IR currently is expected to provide a rate of return of $12\%.$ If industrial production actually grows by $5\%,$ while the inflation rate turns out to be $2\%,$ what is your revised estimate of the expected rate of return on the stock?