Under a two factor model with APT, suppose that expected returns are described by E{r} = 3% + b111 + b2x5% Given two asset returns are described by r1 = 0% + 1f1 +372 + el 12 = 1% + 1f1 + 262 + 2 what is the expected return of 12? (Nearest 0.01 in percentage terms, e.g. write 4.25 for 4.25%)