Using the regression analysis below, if the return on the S &P 500 index is expected to be 10% over the next year, what is the expected return on stock Z over the same period? Beta is 1.28.

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.951688608

R Square

0.905711207

Adjusted R Square

0.874281609

Standard Error

0.042695628

Observations

5

ANOVA

df

SS

MS

F

Significance F

Regression

1

0.05253125

0.05253125

28.81714286

0.01265423

Residual

3

0.00546875

0.00182292

Total

4

0.058

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

0.0328125

0.01924266

1.70519568

0.186702767

-0.028426231

0.09405123

-0.028426231

0.094051231

X Variable 1

1.28125

0.238675817

5.3681601

0.01265423

0.521677027

2.04082297

0.521677027

2.040822973