Suppose two factors are identified for the U$.$S$.$ economy: the growth rate of industrial

production, IP$,$ and the inflation rate, IR$.$ IP is expected to be $5\%$ and IR $5\%.$ A stock with a

beta of $1$ on IP and $0\mathrm{.}7$ on IR currently is expected to provide a rate of return of $10\%.$ If

industrial production actually grows by $6\%,$ while the inflation rate turns out to be $6\%,$

what will be your expected rate of return on the stock, given the new information about

the industrial production rate and the inflation rate? $($Enter your answer as a percentage

rounded to $1$ decimal places.$)$