The stock of Osaka Corporation has an expected return of $8\mathrm{.}2$ percent and betas of: ${}_{GNP}=1\mathrm{.}23$;${}_{\text{I}}=\mathrm{.}97$; and ${}_{Ex}=1\mathrm{.}08.$ This expectation is

based on a three$-$factor model with expected values of: GNP growth of $-1$ percent; inflation of $2\mathrm{.}4$ percent; and export growth of $3\mathrm{.}5$ percent. However,

actual growth in these factors turns out to be $\mathrm{.}55$ percent, $1\mathrm{.}8$ percent, and $2\mathrm{.}6$ percent, respectively. Assuming there was no unexpected news related

specifically to the stock, what was the stock's total rate of return?

Multiple Choice

$8\mathrm{.}47\%$

$7\mathrm{.}85\%$

$8\mathrm{.}55\%$

$8\mathrm{.}85\%$