Suppose your company uses a 2-factor macroeconomic factor model to evaluate stocks and has derived the following results for the stock of XYZ company.

Expected return 10%

GDP Productivity 2

Inflation factor sensitivity -0.5

Over the past year, GDP grew at a rate that was two percentage points lower than originally expected and inflation rose two percentage points higher than originally expected. XYZ also experienced a large unexpected product recall causing a firm-unique surprise of -4% to its stock price. Based on the information provided, the rate of return for XYZ for the year was closest to: